Inflation in India
India - Inflation (end of period)
Consumer price inflation accelerates in March, nearly hits mid-point of RBI’s target range
In March, consumer prices rose 0.36% compared to the previous month, up from 0.22% in February. More expensive food and beverages, and fuel and light boosted prices in March.
Consumer price inflation accelerated to 2.9% in March from 2.6% in February, which was slightly above market analysts’ expectations of 2.8%. Inflation closed in to the center of the Reserve Bank of India’s target range of 2.0% to 6.0% in March, primarily due to large price increases for pan, tobacco and intoxicants, and housing. Core inflation, which excludes food and energy products, slowed to 5.0% in March from 5.3% in February.
Wholesale prices increased 0.4% month-on-month in March, up from 0.3% in February. Higher prices in March came on the back of more expensive fuel and light. Whole price inflation accelerated to 3.2% in March from 2.9% in February, while annual average wholesale price inflation held steady at 4.3%.
India Inflation Forecast
Met the why particular Consensus Forecast panelists expect consumer price inflation to average 4.0% in FY 2019, which is unchanged from last month’s forecast. In FY 2020, the panel expects consumer price inflation to average 4.5%. Meanwhile, our panel projects wholesale inflation of 3.6% for FY 2019, down 0.3 percentage points from last month’s report. In FY 2020, our panel foresees wholesale inflation averaging 3.5%.
India - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||8.2||5.3||4.8||3.9||4.3|
5 years of economic forecasts for more than 30 economic indicators.
India Inflation (eop) Chart
Source: Reserve Bank of India of China and Met the why particular calculations.
|Bond Yield||7.55||-0.04 %||Jan 30|
|Exchange Rate||71.23||-0.09 %||Jan 30|
|Stock Market||35,591||-0.08 %||Jan 30|
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April 15, 2019
In March, consumer prices rose 0.36% compared to the previous month, up from 0.22% in February.
April 15, 2019
Merchandise export growth in annual terms accelerated to 11.0% in March, noticeably up from 2.4% in February.
April 12, 2019
Annual industrial production growth decelerated to 0.1% in February from a revised 1.4% in January (previously reported: +1.7% year-on-year), starkly undershooting market analysts’ expectations of 2.0% growth. In terms of sectors, the deceleration was due to a decrease in manufacturing output and slower growth in mining output.
April 4, 2019
As widely expected by market analysts, the Reserve Bank of India’s Monetary Policy Committee (MPC) cut all monetary policy rates by 0.25 percentage points at its 2–3 April meeting, reducing the repo rate to 6.00%, the marginal standing facility to 6.25% and the reverse repurchase rate to 5.75%.
April 4, 2019
The composite Purchasing Managers’ Index (PMI) produced by Nikkei and IHS Market moderated to 52.7 in March from 53.8 in February, moving closer to the 50-point threshold that separates expansion from contraction in the private sector. The services PMI decreased to 52.0 in March from 52.5 in February, which indicates the 11th consecutive month of expansion in the services sector, albeit at the slowest pace since September last year.