Updated: March 12, 2021 6:14:11 pm
The country’s retail inflation, measured by the Consumer Price Index (CPI), rose to 5.03 per cent in the month of February. Separately, India’s factory output, measured in terms of the Index of Industrial Production (IIP), witnessed a contraction of (-)1.6 per cent in January, two separate data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Friday.
The retail inflation during the month of January was at 4.06 per cent.
This is the third straight month that the CPI data has come within the Reserve Bank of India’s (RBI) upper margin of 6 per cent.
The government has mandated the central bank to keep retail inflation within the range of 4 per cent with a margin of 2 per cent on either side. The retail inflation data is primarily factored in by the RBI while making its bi-monthly monetary policy.
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The rise in retail inflation last month was mainly due to a rise in food prices. The Consumer Food Price Index (CFPI) or the inflation in the food basket rose to 3.87 per cent in the month of February, up from 1.96 per cent in January, the data revealed.
The month-on-month rise in the food basket was led by a rise in prices of oils and fats which rose 20.78 per cent in February, while that of pulses and products rose 12.54 per cent, the data showed. Non-alcoholic beverages gained 13.92 per cent while meat and fish segment also witnessed a rise of 11.34 per cent and egg prices too rose 11.13 per cent. Vegetable prices however, slipped -6.27 per cent on-year in February.
Index of Industrial Production (IIP)
India’s factory output or IIP witnessed a contraction of (-)1.6 per cent on-year to 135.2 during the month of January, separate data released by the MoSPI showed.
According to the data, the IIP had grown 2.2 per cent in January 2020.
So far in the fiscal year 2020-21 (April-January), the industrial sector has seen a contraction of (-)12.2 per cent, compared to a 0.5 per cent growth in the corresponding period a year ago, the data showed.
The contraction in IIP during January is primarily on account of the manufacturing and mining sectors. The manufacturing sector saw a contraction of -2.0 per cent on-year to 135.1 in January, while the mining sector witnessed a fall of -3.7 per cent to 119.7. The electricity sector on the other hand rose 5.5 per cent to 164.2, the MoSPI data showed.
In the corresponding month year ago, the manufacturing sector had risen of 1.8 per cent, the mining sector had witnessed a rise of 4.4 per cent and the electricity sector had gained 3.1 per cent.
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