India Inflation Rate

Consumer prices in India went up 4.83 percent year-on-year in March of 2016, slowing from
an upwardly revised 5.26 percent rise in February. The inflation rate eased for the second
straight month, reaching the lowest figure since September last year and compared to market
expectations of 5 percent as food prices rose at a slower pace. Inflation Rate in India
averaged 7.79 percent from 2012 until 2016, reaching an all time high of 11.16 percent in
November of 2013 and a record low of 3.69 percent in July of 2015. Inflation Rate in India is
reported by the Ministry of Statistics and Programme Implementation (MOSPI), India.
In 2013, the consumer price index replaced the wholesale price index (WPI) as a main
measure of inflation. In India, the most important category in the consumer price index is
Food and beverages (45.86 percent of total weight). Housing accounts for 10 percent;
Transport and communication for 8.6 percent; Fuel and light for 6.84 percent; Clothing and
footwear for 6.5 percent; Medical care for 5.9 percent and education for 4.5 percent.
Consumer price changes in India can be very volatile due to dependence on energy imports,
the uncertain impact of monsoon rains on its large farm sector, difficulties transporting food
items to market because of its poor roads and infrastructure and high fiscal deficit. This page
provides - India Inflation Rate - actual values, historical data, forecast, chart, statistics,
economic calendar and news. India Inflation Rate - actual data, historical chart and calendar
of releases - was last updated on April of 2016.
Consumer prices in India went up 4.83 percent year-on-year in March of 2016, slowing
from an upwardly revised 5.26 percent rise in February. The inflation rate eased for the
second straight month, reaching the lowest figure since September last year and
compared to market expectations of 5 percent as food prices rose at a slower pace.
Year-on-year, cost of food and beverages rose 5.27 percent (5.52 percent in February),
provisional estimates showed. The food alone index rose at a slower 5.21 percent compared
to 5.3 percent in the previous month. The biggest rise came from pulses (up 34.15 percent
from 38.3 percent in the previous month), followed by spices (9.58 percent from 9.87 percent
in the previous month) and meat and fish (7.74 percent from 7.27 percent in the previous
month). Prices of vegetables rose a meager 0.54 percent (0.7 percent in the previous month)
while fruits went down 1.1 percent (-0.72 percent in the previous month).
Cost of clothing and footwear went up 5.27 percent year-on-year (5.52 percent in February);
fuel and light rose 3.38 percent (4.59 percent in February); and housing prices increased 5.31
percent (5.33 percent in December).
The corresponding provisional inflation rates for rural and urban areas are 5.79 percent and
3.98 percent (6.05 percent and 4.3 percent respectively in February).
A year ago, the inflation rate was 5.25 percent.
For February of 2016, the inflation rate was revised to 5.26 percent from 5.18 percent.
The annualised inflation rate in India is 3.78% as of August 2015, as per the Indian Ministry
of Statistics and Programme Implementation. This represents a modest reduction from the

previous annual figure of 9.6% for June 2011. Inflation rates in India are usually quoted as
changes in the Wholesale Price Index, for all commodities.
Many developing countries use changes in the Consumer Price Index (CPI) as their central
measure of inflation. India used WPI (Wholesale Price Index as the measure for inflation but
new CPI(combined) is declared as the new standard for measuring inflation ( April 2014) [ [1]]
CPI numbers are typically measured monthly, and with a significant lag, making them
unsuitable for policy use. Instead, India uses changes in the Wholesale Price Index (WPI) to
measure its rate of inflation.
Provisional annual inflation rate based on all India general CPI (Combined) for November
2013 on point to point basis (November 2013 over November 2012) is 11.24% as compared
to 10.17% (final) for the previous month of October 2013. The corresponding provisional
inflation rates for rural and urban areas for November 2013 are 11.74% and 10.53%
respectively. Inflation rates (final) for rural and urban areas for October 2013 are 10.19% and
10.20% respectively.[2]
The WPI measures the price of a representative basket of wholesale goods. In India, this
basket is composed of three groups: Primary Articles (20.1% of total weight), Fuel and Power
(14.9%) and Manufactured Products (65%). Food Articles from the Primary Articles Group
account for 14.3% of the total weight. The most important components of the Manufactured
Products Group are Chemicals and Chemical products (12%); Basic Metals, Alloys and Metal
Products (10.8%); Machinery and Machine Tools (8.9%); Textiles (7.3%) and Transport,
Equipment and Parts (5.2%).
WPI numbers are typically measured weekly by the Ministry of Commerce and Industry. This
makes it more timely than the lagging and infrequent CPI statistic.
Inflation India 2016 (CPI) - The inflation chart and table below feature an overview of the
Indian inflation in 2016: CPI India 2016. The inflation rate is based upon the consumer price
index (CPI). The CPI inflation rates in the table are presented both on a monthly basis
(compared to the month before) as well as on a yearly basis (compared to the same month the
year before).

Chart - CPI inflation India 2016 (yearly basis)

The average inflation of India in 2016: 5.72 %