Inflation in India
India - Inflation
Inflation declines to lowest level since February in July
Consumer prices increased 0.46% from the previous month in July, which was below June's 0.52% rise. July's result marked the weakest reading since February. The result was driven by moderating price pressures for food and beverages.
Inflation fell to 6.7% in July from June’s 7.0%. July's reading represented the weakest inflation rate since February. Annual average inflation rose to 6.0% in July (June: 5.9%).
On the near-term outlook, analysts at Nomura said:
“The bulk of the decline has been driven by volatile components, whereas underlying inflation has not yet shown any signs of moderation, and remains sticky around 6%, suggesting strong domestic demand. Looking ahead, daily price data so far for August suggest that headline inflation is likely to remain around July levels.”
Our panel projects inflation to average 6.5% in FY 2022, which is up 0.4 percentage points from last month’s estimate, and 4.9% in FY 2023.
India - Inflation Data
|Inflation Rate (CPI, annual variation in %)||4.9||4.5||3.6||3.4||4.8|
5 years of economic forecasts for more than 30 economic indicators.
India Inflation Chart
Source: Reserve Bank of India of China and FocusEconomics calculations.
|Bond Yield||6.50||-0.04 %||Jan 01|
|Exchange Rate||71.23||-0.09 %||Jan 01|
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August 12, 2022
Industrial output increased 12.3% in year-on-year terms in June, which was a deterioration from May's 19.6% increase.
August 12, 2022
Consumer prices increased 0.46% from the previous month in July, which was below June's 0.52% rise.
August 5, 2022
On 5 August, the Reserve Bank of India (RBI) decided to increase the repo rate—its main policy instrument—by 50 basis points to 5.40%.
August 3, 2022
The S&P Global Composite Purchasing Managers' Index (PMI) came in at 56.6 in July, down from June's 58.2.
July 14, 2022
Merchandise exports jumped 23.5% year-on-year in June, following May’s 20.6% jump.