India’s Retail Inflation in June: The retail inflation, measured by the Consumer Price Index (CPI), marginally eased to 7.01 per cent in June. Separately, the factory output, measured in terms of Index of Industrial Production (IIP), surged by 19.6 per cent in May.
CPI Inflation, IIP Growth Rate India June 2022: The country’s retail inflation, which is measured by the Consumer Price Index (CPI), rose to 7.01 per cent in the month of June. Separately, India’s factory output, measured in terms of Index of Industrial Production (IIP), witnessed a growth of 19.6 per cent in May, two separate data released by the Ministry of Statistics & Programme Implementation (MoSPI) showed on Tuesday.
The retail inflation for the month of May was 7.04 per cent.
This is the sixth consecutive month that the CPI data has breached the Reserve Bank of India’s (RBI) upper margin of 6 per cent. The government has mandated the central bank to maintain retail inflation at 4 per cent with a margin of 2 per cent on either side for a five-year period ending March 2026.
The CPI data is mainly factored in by the RBI while making its bi-monthly monetary policy. The central bank has forecast that inflation is expected to be above seven per cent – much above the RBI’s comfort level — in the first two quarters of the current fiscal.
In its previous two meetings, the Monetary Policy Committee (MPC) of RBI has hiked the benchmark repo rate by a cumulative 90 basis points (bps). It raised the repo rate by 40 bps in an off-cycle meeting in May and by 50 bps in its June meeting.
The Consumer Food Price Index (CFPI) or the inflation in the food basket also eased on-month during June to 7.75 per cent, from 7.97 per cent in May, the data revealed.
Prices of vegetables surged 17.37 per cent on year in June. Apart from this, the oils and fats prices saw a rise of 9.36 per cent while that meat and fish gained 8.61 per cent and spices rose 11.04 per cent. Milk and products spiked 6.08 per cent last month while cereals and products climbed 5.66 per cent. However, egg prices fell (-)5.48 per cent while pulses and products dipped (-)1.02 per cent.
Apart from food and beverages, the fuel and light segment rose 10.39 per cent, clothing and footwear gained 9.52 per cent, housing segment inched up 3.93 per cent and the pan, tobacco and intoxicants rose 1.83 per cent.
Industrial output (IIP)
India’s factory output, which is measured in terms of IIP witnessed a sharp growth of 19.6 per cent year-on-year to 137.7 during the month of May, separate data released by the MoSPI showed.
The IIP had surged 27.6 per cent in May 2021, the data showed.
The industrial growth so far in the first two months of the fiscal year 2022-23 (April-May) has risen 12.9 per cent, compared to a surge of 67.3 per cent rise in the corresponding period a year ago, the data showed.
The growth in IIP data during May was led by mining, manufacturing and electricity sectors. The electricity sector witnessed a steep growth of 23.5 per cent on-year to 199.9 while key manufacturing sector saw a 20.6 per cent growth to 134.5. The mining sector rose 10.9 per cent to 120.1 in May, the MoSPI data showed.
In May last year, the manufacturing sector had witnessed a sharp growth of 32.1 per cent. During the same month, the mining sector had risen 23.6 per cent, while the electricity sector had witnessed a growth of 7.5 per cent, the data showed.
Source:indianexpress.com