Inflation rate lowers down to 2.18 per cent in May, lowest since 2012

Driven by cooling food prices, India's annual consumer price inflation eased further to 2.18 per cent in May, from 2.99 per cent in April, government data showed on Monday.

By: Express Web Desk | New Delhi | Updated: June 12, 2017 6:18 pm
inflation, Retain inflation, CPI, Consumer price inflation, Inflation india, Retail food prices fell 1.05 percent last month from a year ago, compared with a 0.61 percent gain in April.

Driven by cooling food prices, India’s annual consumer price inflation eased further to 2.18 per cent in May, from 2.99 per cent in April, government data showed on Monday. This is the lowest inflation rate since India started publishing an economy-wide consumer price index in 2012. Retail food prices fell 1.05 percent last month from a year ago, compared with a 0.61 percent gain in April.

Industrial production growth, on the other hand, slipped to 3.1 per cent in April due to poor show by manufacturing, mining and power sectors coupled with lower offtake of capital goods and consumer durables. The factory output measured in terms of the index of industrial production (IIP) had expanded by 6.5 per cent in April last year, the data released by the Central Statistics Office (CSO) today showed.

The CSO also revised upwards the IIP growth figure for March to 3.75 per cent from provisional estimate of 2.7 per cent released last month.

According to the CSO data, manufacturing sector, which constitutes 77.63 per cent of the index, grew at 2.6 per cent in April compared to 5.5 per cent in same month last year.

 

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  1. S
    Sujatha Selvam
    Jun 13, 2017 at 2:30 am
    Manufacturing sector, which cons utes 77.63 per cent of the index, grew at 2.6 per cent in April compared to 5.5 per cent in same month last year. Industrial production growth, slipped to 3.1 per cent in April due to poor show by manufacturing, mining and power sectors coupled with lower offtake of capital goods and consumer durables. The factory output measured in terms of the index of industrial production (IIP) had expanded by 6.5 per cent in April last year. Still government is trump beat that they are doing excellent. What a joke!
    Reply
  2. S
    Shaikh Mohammad
    Jun 12, 2017 at 11:43 pm
    Inflation means a percentage increase over a base price. True that inflation figures are record low at 2.18 , but the base price is unacceptably high. So, even if prices are not growing faster over the already high price ru the commodity prices, it doesn't have any beneficial effect on consumers who are already paying very high price for goods and services. Therefore, crediting low inflation figure as an achievement of the gov't is a very big hoax and cheap gimmick on less educated people.
    Reply
  3. C
    ck
    Jun 12, 2017 at 11:01 pm
    Dipping the growth rate of manufacture sector which is more than 70 , effecting the overall GDP. If it is not increased more than double from the present rate, the rising rate will be worst in past.
    Reply
  4. L
    L bhadrapati Devi
    Jun 12, 2017 at 10:03 pm
    Low inflation is not good for opposition party because ru party does something better supply side management. However, overall slowdown in iip must be addressed at the earliest.
    Reply
  5. E
    Employ Ment
    Jun 12, 2017 at 8:26 pm
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    Reply
  6. I
    Ivan
    Jun 12, 2017 at 6:54 pm
    Food products cons ute more than 50 of the index. With the collapse of agricultural prices the CPI is bound to be low. But what about rentals, transport and education? The index should be weighted correctly for the current realities of the middle class.
    Reply
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