Indian Inflation at New Highs
This week, let's take a look at how inflation is being managed elsewhere in the world, but checking in on India. In recent years, India's national bank has struggled with keeping inflation levels manageable my keeping a close eye on interest rates. Unfortunately, the national inflation levels in India have reached a new high.
Wholesale prices in India rose by 4.43 percent year-on-year in May of 2018, after a 3.18 percent gain in the prior month and above market estimates of 3.76 percent. It is the highest wholesale inflation since March 2017, driven by faster rises in cost of food, manufactured products, and fuel.
In May, cost of primary articles increased much faster (3.16 percent from 1.41 percent in April), as cost of food advanced more (1.6 percent from 0.87 percent in a month earlier), namely potato (81.93 percent); fruits (15.4 percent); and onion (13.2 percent). Also, cost went up at a higher rate for manufactured products (3.73 percent from 3.11 percent), and fuel and power (11.22 percent from 7.85 percent).
On a monthly basis, wholesale prices increased by 0.9 percent, compared to a 0.7 percent rise in April.
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