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India Inflation Accelerates More Than Expected

12.07.2019 08:36 (UTC +0)

India's consumer price inflation accelerated at a faster-than-expected pace in June, figures from the statistics ministry showed on Friday.

The consumer price index climbed 3.18 percent year-on-year following a 3.05 percent increase in May. Economists had forecast 3.13 percent inflation.

The food price inflation accelerated to 2.17 percent from 1.83 percent.

In June, the Reserve Bank of India cut the key interest rate by a quarter basis point, the third in a row, to its lowest level since 2010 and tweaked its monetary policy stance to accommodative from neutral.

Considering the impact of rate cuts and expectations of a normal monsoon, the bank revised down the path of CPI inflation to 3.0-3.1 percent for the first half of the fiscal 2020 and to 3.4-3.7 percent for the second half.



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