IIP quickens to 7.5%, inflation softens

  • IIP quickens to 7.5%, inflation softens

IIP quickens to 7.5%, inflation softens

Inflation as measured by the CPI slowed to 4.44% in February from 5.07% in January, mostly due to easing food and fuel prices.

"When it comes to consumer inflation, 4.4% in February may be lower than January, the undercurrent remains biased on the upside, making RBI disinclined towards any rate cut, though the industry would like it to happen", it said in a statement.

As industrial output expanded at 7.5 per cent in January, India Inc today said the improvement augurs well for the return of broad based recovery in industrial performance which may be on the up-slope, going forward.

India's factory production grew in January to 7.5 per cent over the same month past year, and marginally over the 7.1 per cent recorded in December 2017, official data showed on Monday.

The CPI inflation was in line with the Reserve Bank of India forecast of 5.1% from January to March. "A 25 basis point rate hike is expected only in the last quarter of the fiscal 2018-19".

The general index for the month of January 2018 stands at 132.3, which is 7.5 percent higher as compared to the level in the month of January 2017. The manufacturing sector saw growth quickening marginally to 8.7% in January from 8.4% in the previous month.

As many as 16 of the 23 industry groups registered positive growth during the month when compared to the corresponding period in 2017. In January, retail prices of vegetables rose almost 30%. However, mining grew by a mere 0.1 per cent in the month.

The cumulative CPI inflation was lower at 3.52% in April-December FY2018 compared with 4.58% in April-December FY2017. While the manufacturing sector grew 8.7% in January, compared with 2.5% in the same month past year, capital goods grew 14.6% and consumer non-durables 10.5% in the month under review. It was much lower at 2.01 per cent in February 2017.

Inflation softened last month mainly on account of cheaper food prices and lower cost for fuel.