[ad_1]
India’s retail inflation marginally eased in June to 7.01%, but well above the Reserve Bank of India’s tolerance limit for sixth consecutive month as lower fuel and cooking oil prices offset higher services and food costs, showed government data on Tuesday.
Despite a substantial recent increase in food prices, rising at the fastest pace in nearly two years, overall inflation was partly contained after the government cut taxes on petrol and diesel and imposed restrictions on food exports.
On the other hand, industrial production growth zoomed to 19.6% in May, showed government data on Tuesday.
The Index of Industrial Production (IIP) had grown 7.1% in April this year after remaining subdued for the preceding seven months.
Though growth in the index of industrial production (IIP) looks quite impressive, it is just a base effect of the previous two years that is giving it a bump. IIP growth was recorded at 27.6% in May last year, mainly due to the low-base effect.
Industrial production had grown by 13% in August last year. Thereafter, the IIP growth remained below 4.4% (in September) and touched the lowest level of 1% in November as well as December last year.
RBI has raised interest rates by 90 basis points so far this year to 4.9% and is set to add more in coming months. RBI Governor Shaktikanta Das said recently inflation was unlikely to fall within the top end of its mandated target band until December.
The Quick Estimates of IIP are released on the 12th of every month (or previous working day if 12th is a holiday) with a six-week lag. They are compiled from data received from source agencies, which in turn receive the inputs from the producing factories/ establishments.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
