Retail inflation rises for sixth straight month, industrial growth slips to 3.1% in Mayhttps://indianexpress.com/article/business/market/retail-inflation-index-of-industrial-production-5826794/

Retail inflation rises for sixth straight month, industrial growth slips to 3.1% in May

The increase in retail inflation is mainly due to the rise in food prices, according to official data.

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The increase in retail inflation is mainly due to the rise in food prices, according to official data. (File)

Retail inflation in June has risen marginally to 3.18 per cent from 3.05 per cent the previous month, while Industrial growth slipped to 3.1 per cent in May.

The Index of Industrial Production (IIP) is recorded to be at 3.1 per cent in the month of May as compared to 3.8 per cent a year ago, according to the data released by the government, news agency PTI reported.

The increase in retail inflation is mainly due to the rise in food prices, according to official data. However, the rate of price rise in vegetables and fruits was slower. Retail inflation has been showing a rising trend since January this year when it stood at 1.97 per cent. In the year-ago period, the retail inflation was at 4.92 per cent in June 2018.

As per the Consumer Price Index data released by the Central Statistics Office (CSO), the food inflation rose to 2.17 per cent in June 2019, up from 1.83 per cent in the preceding month.

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The Reserve Bank of India mainly factors in retail inflation while deciding the bi-monthly monetary policy.

The rise in industrial production to 3.1 per cent in May has been on account of improvement in power generation, official data states. However, there was a slowdown in the manufacturing sector, which grew at 2.5 per cent in May compared to 3.6 per cent a year ago.

While the mining sector expanded to a mere 3.2 per cent in May in comparison to 5.8 per cent in the year-ago month. The CSO data calculates the capital goods output, which is a barometer of investment, at 0.8 per cent compared to May last year which was 6.4 per cent.

In terms of industries, 12 out of the 23 industry groups in the manufacturing sector have shown positive growth in May over the same month last year.

With PTI inputs