India Inflation Accelerates to a Six-Month High

(Bloomberg) -- India’s inflation inched up for a third straight month in April, though remaining well below the central bank’s target to prompt another interest-rate cut to support the economy.

Consumer prices rose 2.92% from a year earlier, the Statistics Ministry said in a statement on Monday. That’s the highest in six months and compares with the 2.99% median estimate in a Bloomberg survey of 39 economists.

Key Insights

What Economists Say

• “With growth slowing down and inflation under check, we are looking at a 25 basis points cut in June,” said Aastha Gudwani, an economist with DSP Merrill Lynch Ltd. in Mumbai. “Food prices are back to inflation mode and are likely to remain there in May too. The good thing is the moderation in core, which should give markets some comfort.”

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• Consumer food prices rose 1.10%
• Fuel and light prices rose 2.56%
• Housing prices rose 4.76%
• Clothing and footwear prices rose 2.01 percent
• India is due to release wholesale price inflation numbers Tuesday

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