Retail inflation soars to 5% in June, IIP presides to 3.2% in May

New Delhi: India’s retail inflation rose to a five-month high of 5 percent in the month of June as compared to 4.87 percent in May, as suggested by the data from the Central Statistics Office.

The Index of Industrial Production (IIP) moderated to 3.2 percent in May as compared to 4.9 per cent in April.
The slowdown in the industrial production comes on the back of a moderation in the growth of core sector industries which rose 3.6 percent.

The Consumer Price Index (CPI), which remained as the main price gauge indicated June’s data as an indication that inflation is inching towards Reserve Bank of India’s tolerance level of six percent.

Consumer food price inflation, in monthly kitchen costs, grew 2.91 percent in June from 3.10 percent in May.

The indices of IIP for the Mining, Manufacturing and Electricity sectors for the month of May 2018 stand at 107.5, 129.1 and 164.7 respectively, with the corresponding growth rates of 5.7 percent, 2.8 percent and 4.2 percent as compared to May 2017 (Statement I).

The cumulative growth in these three sectors during April-May 2018 over the corresponding period of 2017 has been 4.9 percent, 4.0 percent and 3.1 percent respectively.

As per Use-based classification, the growth rates in May 2018 over May 2017 are 5.7 percent in Primary goods, 7.6 percent in Capital goods, 0.9 percent in Intermediate goods and 4.9 percent in Infrastructure/ Construction Goods (Statement III).

The Consumer durables and Consumer non-durables have recorded growth of 4.3 percent and (-) 2.6 percent respectively.

However, the Reserve Bank of India (RBI) in its policy review in June, revised upwards its inflation projection to 4.8-4.9 percent for the first half of 2018-19. (ANI)