Retail inflation slows to 6.58% in February on easing food prices; industrial production grows 2% in January

Retail inflation slowed to 6.58 percent in February over the previous month mainly due to easing food prices, government data showed on Thursday. The retail inflation based on Consumer Price Index (CPI) was 7.59 percent in January and 2.57 percent in February 2019. The inflation in the food basket was 10.81 percent in February 2020, lower from 13.63 percent in the previous month, as per the CPI data released by the National Statistical Office (NSO).

#BREAKING | February CPI inflation comes in at 6.58% Vs 7.6% (MoM); clothing & footwear inflation at 2.05% Vs 1.91% (MoM) pic.twitter.com/GBXWEh0bkS

— CNBC-TV18 (@CNBCTV18Live) March 12, 2020

The Reserve Bank of India mainly factors in the retail inflation while deciding its bi-monthly monetary policy. The government has mandated the central bank to keep inflation at around 4 percent. Industrial production grows 2% in January India’s industrial output grew by 2 percent in January amid subdued performance of manufacturing sector, government data showed on Thursday. The Index of Industrial Production (IIP) had grown by 1.6 percent in January 2019.

January IIP at 2% Vs CNBC-TV18 poll of 0.63% & Vs -0.3% (MoM).

Here's more. https://t.co/9XllkS7LYm pic.twitter.com/mD3FNK93rz

— CNBC-TV18 (@CNBCTV18Live) March 12, 2020

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According to data from the National Statistical Office (NSO), the manufacturing sector output grew by 1.5 percent as compared with a rise of 1.3 percent in the corresponding month a year ago. Electricity generation rose 3.1 percent, against 0.9 percent growth in January 2019. The mining sector output posted a growth of 4.4 percent in January 2020, compared with a rise of 3.8 percent a year ago. The IIP growth during the April 2019-January 2020 period decelerated to 0.5 percent, from 4.4 percent expansion in the corresponding period of 2018-19. (With PTI inputs)