Retail inflation touches 7-month high of 3.05% in May on higher food prices; IIP rises 3.4% in April
BusinessToday.In June 12, 2019
Retail inflation touched a seven-month high of 3.05 per cent in May 2019, according to government data released on Wednesday. The previous high was in October 2018, when the retail inflation was recorded at 3.38 per cent.
Higher vegetable and food prices led to the fourth consecutive monthly increase in retail inflation, which is calculated on the basis of Consumer Price Index (CPI). As per the data released by Central Statistics Office (CSO), inflation in the food basket increased t0 1.83 per cent in May. The same was recorded at 1.1 per cent in April.
The retail inflation in April 2019 was revised upwards to 2.99 per cent from the earlier 2.92 per cent. The retail inflation level during the May 2018 was recorded at 4.87 per cent.
The Reserve Bank of India has set the targets of 4 per cent for the inflation rate. The Monetary Policy Committee (MPC) under the central bank factors in CPI-based retail inflation while finalising its monetary policy.
On the other hand, Index of Industrial Production (IIP) grew by 3.4 per cent in April 2019 as compared to the levels in April 2018. The rise was mainly due to better performance by mining and power generation segments.
In terms of industries, 14 out of the 23 industry groups in the manufacturing sector showed positive growth in comparison to the corresponding month of the previous year. The industry group 'Manufacture of wearing apparel' showed the highest positive growth of 33.6 percent.
On the other hand, the industry group 'Manufacture of paper and paper products' showed the highest negative growth of -12.3 percent followed by -9.6 percent in 'Manufacture of fabricated metal products, except machinery and equipment' and (-) 3.5 percent in 'Manufacture of other transport equipment'.
According to use-based classification, the growth rates in April 2019 over April 2018 were 5.2 percent in primary goods, 2.5 percent in capital goods, 1.0 percent in intermediate goods and 1.7 percent in infrastructure and construction goods. The consumer durables and consumer non-durables recorded growth of 2.4 percent and 5.2 percent, respectively.
(Edited by Vivek Punj)