Consumer Price Index (CPI) of India

India's retail inflation rose to 3.18% YoY in June 2019.

Published monthly by the Ministry of Statistics and Programme Implementation (MOSPI). Updated until June 2019. (Published on July 12th, 2019) 
Note: The seasonally adjusted series has been obtained using the Census X-13 procedure with the X-11 method of seasonal adjustment.
Note: The core CPI excludes food and fuel group from the headline CPI. The effective core CPI excludes pan tobacco & intoxicants and housing from core CPI.
Note: CPI-Services includes health, education, personal care, recreation, and amusement services. CPI-Goods is CPI excl. CPI services.

Recent Data Trend

India’s consumer price index based inflation stood at an 8-month high of 3.18% YoY in June 2019 as against 2.33% YoY in November 2018 mainly on account of rise in the prices of food and beverages. While the increase in the prices of health and education also added to the uptick. Rising inflation was witnessed in both rural and urban areas witnessing 2.2% YoY and 4.3% YoY respectively. However, on year-on-year basis, headline inflation in June was lower than the corresponding period last year when the retail inflation stood at 4.92% YoY.

Increase in prices of food and beverages stood at a 12-month high of 2.36% YoY in June 2019 compared to 1.72% YoY in July 2018. Consumer food price index rose to 12-month high at 2.17% YoY in June compared to 1.37% YoY in July last year.

Inflation in the fuel group remained benign at 2.31% YoY in June 2019, compared to 2.48% YoY in the previous month. This was mainly due to a lower Brent crude oil prices in the international markets hovering around $60/ barrel. On the other hand, housing prices remain stable at 4.8% YoY since last 3-months. Meanwhile, the Core CPI relaxed from 6.4% YoY in June last year compared to 4.1% YoY in June 2019.

Though the headline inflation remains within RBI’s long term inflation target of 4%, but the inflation is on a rising momentum. It is indicative of the fact that the interest rate cuts announced by the central bank in the previous three Monetary policy Committee Meeting is being seeped in. The rainfall in several parts of the country remains to be scanty which increases our concern over inflation to further rise in the coming months. Additionally, the rise in the fuel prices after the imposition of cess on transport fuel in the budget could result in a cascading effect leading to a rise in various commodity prices further pushing the inflation on a higher trajectory.

Brief Overview

Consumer Price Index in India is published monthly by the Central Statistical Organization (CSO). Consumer Price Indices (CPI) measure changes over time in the general level of prices of goods and services that households acquire for consumption. CPI is a macroeconomic indicator of inflation and used as a tool by central banks for inflation targeting and monitoring price stability, and as deflators in the national accounts. CPI is also used for indexing dearness allowance to employees for the increase in prices.

The data we present above is in the base year 2012. The Field Operations Division of NSSO, the specified State/UT Directorates of Economics and Statistics and 1181 selected villages of the Department of Posts collect monthly price data from 1114 markets in 310 chosen towns.

For more information, please visit the official government website.

CPI- Sub-groups

CPI- Quarterly

Note: The seasonally adjusted series has been obtained using the Census X-13 procedure with the X-11 method of seasonal adjustment

CPI- Industrial Workers

CPI- Annual

Next Release Date: August 12, 2019