Retail inflation slightly reduced to 6.58% in February this year, after hitting a near six-year high in January at 7.59%. In February 2019, retail inflation was at 2.57%.
Data released by the Ministry of Statistics and Program Implementation shows that rural retail inflation was at 6.67% and urban retail inflation stood at 6.57% in February. According to reports, retail inflation has eased for the first time in seven months.
According to the National Statistical Office (NSO), even though the consumer food price index remained at an elevated level, its rise was slower during February at 10.81%, compared with 13.63% recorded in January 2020 and (-)0.73% in the corresponding period of last year.
While the increase in January’s retail inflation was largely attributed to increased vegetable prices, lower prices of food and beverages eased the retail inflation for February.
The Reserve Bank of India mainly factors in the retail inflation while deciding its bi-monthly monetary policy. The government has mandated the central bank to keep inflation at around 4%. This target was set by the RBI for the period August 5, 2016, to March 31, 2021. This allowed a lower tolerance limit of 2% and an upper tolerance limit of 6%.
India's industrial output grew by 2% in January amid subdued performance of the manufacturing sector, government data showed on Thursday. The Index of Industrial Production (IIP) had grown by 1.6% in January 2019.
According to the NSO, manufacturing sector output grew by 1.5% in January as compared to a rise of 1.3% in the corresponding month a year ago.
Electricity generation rose 3.1% in January, against 0.9% growth in January 2019. The mining sector posted a growth of 4.4% in January this year, compared to a rise of 3.8% a year ago.
The IIP growth during the April 2019-January 2020 period decelerated to 0.5%, from 4.4% expansion in the corresponding period of 2018-19.
With inputs from agencies