Inflation for Consumers at 8.28% in May, Slightly Lower than April

Comments Off Written on June 13th, 2014 by
Categories: Inflation

Consumer Price Inflation for May 2014 was at 8.28%, a tad lower than April’s 8.59%.

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From a component level, we find that Food remains high at +9.3%, but Fuel has moderated. (Largely because diesel price increases were kept on hold during elections) Transport costs are at +7.2%, higher than recent months.

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And the rural folks saw inflation falling a little more than the urban folks. But the impact is not huge:

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My take: Inflation stays low, triggers feeling that interest rates will come down. This is positive for us in general, but the risks are a bad monsoon. We currently have 44% less rains than normal, but this situation can change dramatically in the next few days.

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http://www.capitalmind.in
The man behind Capital Mind. Deepak is a co-founder at MarketVision, a financial knowledge company. Deepak also provides data research and consulting services, and now lives in Bangalore. Connect with him at deepakshenoy@gmail.com.