Retail inflation at record low, falls to 1.54 per cent in June

The retail inflation on Wednesday hit a new low of 1.54 per cent in June, down from 2.18 per cent in May, helped by a fall in food prices, according to official data.

By: Express Web Desk | Updated: July 12, 2017 6:28 pm
inflation, inflation down, inflation falls, retail inflation, inflation news, consumer inflation Inflation is at record low.

The retail inflation on Wednesday hit a new low of 1.54 per cent in June, down from 2.18 per cent in May, helped by a fall in food prices. The rate of inflation was 5.77 per cent in the same month of last year, official data showed.  Industrial output also decreased in May due to a slowdown in the manufacturing sector.

The data further revealed that output of the capital goods segment, considered as key indicator of investment, shrunk by 3.9 per cent compared to a high growth of 13.9 per cent recorded in May 2016.

The consumer durables segment too witnessed a decline. While mining sector output declined by 0.9 per cent in May against 5.7 per cent growth in the year-ago month, the growth of manufacturing sector slowed to 1.2 per cent from 8.6 per cent in the same month last year.

For the first time since January 2012, food prices saw deflation in May (-1.05 per cent) and the prospect of good monsoon rains is likely to keep food inflation in check. More details awaited

 

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  1. A
    Albert Colaco
    Jul 13, 2017 at 10:47 am
    Falling inflation to low levels has its flip side also. It indicates that the economy is on a down slide due to low demand. Demonetization has had a negative effect on supply demand in the market. Secondly, due to confusion over GST and hike in rates for several consumables, including durables, people are postponing purchases,except for essentials! Economists particularly the Chief Economic Advisor, Arvind Subramaniam should see the fall in inflation rate, before joining the clamor for a further drop in interest by banks. Fixed income groups including senior citizens have already seen their income from bank deposits down by over 3 pa since 2014 , due to rate cuts. Business and corporates have benefited but no corresponding price cuts in their products prices!
    Reply
    1. Y
      yuvan
      Jul 13, 2017 at 2:04 am
      this is all be cause of con gress. its effect only. our govt has nothing to do with any bads. all goods are ours and all bads are by congress.
      Reply
      1. A
        Anon
        Jul 12, 2017 at 8:36 pm
        Shameful jhumla by Danga party Everyone knows that India is at its worst right now
        Reply
        1. P
          Prasanta Mishra
          Jul 12, 2017 at 8:35 pm
          inflation to go below one percent,great or bad?
          Reply
          1. A
            Albert Colaco
            Jul 13, 2017 at 10:53 am
            Please read my comment above, Mr. Mishra. Fall of inflation to such low levels has its flip side too. Govt is milking the consumer by charging over 120 in various taxes, vat , excise on petroleum products. Why has this sector and electricity not been brought under GST, where max rate is 28 ? Presently, we are paying over 56 taxes on petrol and diesel. Loot mar.
            Reply
          2. J
            jagga jasoos
            Jul 12, 2017 at 8:30 pm
            stop fooling public with figures. This is pretext to reduce bank fixed deposite rates.
            Reply
            1. M
              Modi
              Jul 12, 2017 at 8:04 pm
              You waited for a spurt in growth 6 months after demonetization and we are actually seeing it. We wait for another 6 months the GDP is going to go through roof. There is lot of development going on-Lynching by Gaurakshaks has increased 3000 percent. Israel is going to supply condoms making technology for just 13000 crores. NTRO has plans to estimate food intake by measuring the e x c r e t a of every citizen by planting video cameras in every toilet of every house.
              Reply
              1. L
                L bhadrapati Devi
                Jul 12, 2017 at 7:44 pm
                The falling of inflation below 2 percent is worrisome because the phenomenon is type of stagflation. Growth in GDP will be impacted year down the line. Falling of consumer durable and manufacturing might be due to reaching saturation level of production by all companies. Consumption base also need to be increased through transfer payment and control of of second hand goods.
                Reply
                1. I
                  Ivan
                  Jul 13, 2017 at 4:17 am
                  That is a good point.
                  Reply
                2. S
                  s s nair
                  Jul 12, 2017 at 7:08 pm
                  It was more than what Modi had expected. A sign of success.
                  Reply
                  1. M
                    Modi
                    Jul 12, 2017 at 7:58 pm
                    Economic i d I o t!
                    Reply
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