Retail inflation rises to five.03% in Feb; IIP contracts 1.6% in Jan: Govt knowledge

The nation’s retail inflation, measured by the Consumer Price Index (CPI), rose to five.03 per cent within the month of February. Separately, India’s manufacturing unit output, measured by way of the Index of Industrial Production (IIP), witnessed a contraction of (-)1.6 per cent in January, two separate knowledge launched by the Ministry of Statistics & Programme Implementation (MoSPI) confirmed on Friday.
The retail inflation through the month of January was at 4.06 per cent.
This is the third straight month that the CPI knowledge has come inside the Reserve Bank of India’s (RBI) higher margin of 6 per cent.

The authorities has mandated the central financial institution to maintain retail inflation inside the vary of 4 per cent with a margin of two per cent on both aspect. The retail inflation knowledge is primarily factored in by the RBI whereas making its bi-monthly financial coverage.
The rise in retail inflation final month was primarily attributable to an increase in meals costs. The Consumer Food Price Index (CFPI) or the inflation within the meals basket rose to three.87 per cent within the month of February, up from 1.96 per cent in January, the info revealed.
The month-on-month rise within the meals basket was led by an increase in costs of oils and fat which rose 20.78 per cent in February, whereas that of pulses and merchandise rose 12.54 per cent, the info confirmed. Non-alcoholic drinks gained 13.92 per cent whereas meat and fish section additionally witnessed an increase of 11.34 per cent and egg costs too rose 11.13 per cent. Vegetable costs nonetheless, slipped -6.27 per cent on-year in February.
Index of Industrial Production (IIP)
India’s manufacturing unit output or IIP witnessed a contraction of (-)1.6 per cent on-year to 135.2 through the month of January, separate knowledge launched by the MoSPI confirmed.
According to the info, the IIP had grown 2.2 per cent in January 2020.
So far within the fiscal 12 months 2020-21 (April-January), the commercial sector has seen a contraction of (-)12.2 per cent, in comparison with a 0.5 per cent progress within the corresponding interval a 12 months in the past, the info confirmed.

The contraction in IIP throughout January is totally on account of the manufacturing and mining sectors. The manufacturing sector noticed a contraction of -2.0 per cent on-year to 135.1 in January, whereas the mining sector witnessed a fall of -3.7 per cent to 119.7. The electrical energy sector however rose 5.5 per cent to 164.2, the MoSPI knowledge confirmed.
In the corresponding month 12 months in the past, the manufacturing sector had risen of 1.8 per cent, the mining sector had witnessed an increase of 4.4 per cent and the electrical energy sector had gained 3.1 per cent.