India’s Retail Inflation Hits 13-month Low

India Retail Inflation Chart
India Retail Inflation Chart

CEIC Gallery - October 28th, 2016

Summary India’s inflation cooled more than expected in September, reaching a 13-month low. The consumer price index rose 4.31% last month compared to the same period of the previous year while in August consumer prices increased by 5.05%. The pace of retail inflation was eased by moderating food prices. Food inflation cooled to 3.88% compared to 5.91% in August. Similar, albeit more moderate, trend has been observed among most of the main consumer segments with one exception – transport and communication consumer prices registered a 2.7% gain in September compared to 1.23% in the previous month. These signs of disinflation give room for the central bank to cut interest rates again if need. Earlier this month the Reserve Bank of India (RBI) cut interest rates by 25 basis points to 6.25% in a surprise move by the recently appointed governor Urjit Patel. The latest inflation data comes close to the RBI’s adopted inflation target of 4%. More data and dynamic charts related to the topic are available in the CEIC Gallery on CDMNext: “India Inflation” template Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog Summary

27th October 2016 India’s Retail Inflation Hits 13-month Low

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