Updated: October 12, 2021 6:11:27 pm
Retail inflation growth across the country based on Consumer Price Index (CPI) fell to 4.35 per cent in the month of September as food prices dropped, the data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed. As opposed to this, retail inflation had jumped to an eight-month high of 7.34 per cent in September 2020, primarily driven by higher food inflation.
Separately, the Index of Industrial Production (IIP) witnessed a growth of 11.9 per cent in August, according to the government data.
In August, the CPI inflation rate had eased to a four-month low of 5.3 per cent due to moderation in food prices along with a high base effect. Moreover, the inflation in food basket dropped to 0.68 per cent in September 2021, significantly down from 3.11 per cent in the preceding month.
The CPI-based inflation falls within the RBI’s targeted range of 2 plus/minus 4 per cent.
Last month, Reserve Bank of India (RBI) Governor Shaktikanta Das in a conversation with The Indian Express and the Financial Times had stated, “our expectation is that from now on, inflation will gradually moderate,” adding that RBI is “very serious about anchoring inflation expectations and inflation around the target” of 4 per cent.
Last year in August, the IIP had contracted 7.1 per cent. In July 2021, the industrial output rose by 11.5 per cent as against a 10.5 per cent contraction in July 2020, led by sharp expansion in the mining sector and growth recorded by the electricity and manufacturing sectors.
As per the data released by the government, the manufacturing sector’s output surged 9.7 per cent in August 2021. While the mining output climbed 23.6 per cent, power generation increased 16 per cent. During April-August this year, the IIP grew 28.6 per cent against a 25 per cent contraction in the same period last year.
Due to the coronavirus pandemic which hit India last year, the industrial production had contracted to 18.7 per cent in March 2020.
— With PTI inputs
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