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FX.co ★ India Inflation Rises More Than Forecast; Industrial Output Growth Improves

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typeContent_19130:::2023-07-12T12:43:00

India Inflation Rises More Than Forecast; Industrial Output Growth Improves

India's consumer price inflation rose more-than-expected in June from the previous month's 25-month low, while industrial production expanded at an accelerated pace in May, separate data from the National Statistical Office showed on Wednesday.

The consumer price index, or CPI, climbed 4.81 percent year-over-year in June, faster than the revised 4.31 percent rise in May. Economists had forecast the inflation rate to increase to 4.58 percent.

Inflation remained within the Reserve Bank of India's tolerance band of 2-6 percent for the fourth month in a row, although still above the medium-term target of 4.0 percent.

Food price inflation accelerated to 4.49 percent in June from 2.96 percent in the prior month.

Prices for clothing and footwear rose 6.19 percent annually in June, and housing costs were 4.56 percent higher.

On a monthly basis, consumer prices went up 1.01 percent in June, and food prices were 2.48 percent more expensive.

Separate official data showed that annual industrial production growth improved to 5.2 percent in May from 4.5 percent in April. That was also above the expected rise of 4.8 percent.

Among the three main sectors, mining production grew the most, by 6.4 percent, followed by a 5.7 percent increase in manufacturing output. However, electricity production managed to grow only by 0.9 percent.

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