Industrial Output Slips, Inflation Rises

Industrial production growth dropped to 4.3 per cent in July due to a slowdown in the manufacturing sector while inflation rose marginally to 3.21% in August from 3.15 last month, data released by the government showed on Thursday.

Factory output as measured in terms of the Index of Industrial Production (IIP) was recorded at 6.5 per cent in July 2018.

The manufacturing sector grew at 4.2 per cent in July as compared to 7 per cent a year ago, according to a statement issued by the Ministry of Statistics and Programme Implementation.

The power generation sector grew at 4.8 per cent as compared to 6.6 per cent in July last year. Mining growth was 4.9 per cent in July as against 3.4 per cent in the corresponding month of previous fiscal.

The IIP for the mining, manufacturing and electricity sectors for July 2019 stand at 100.2, 132.9 and 169.7 respectively with the corresponding growth rates of 4.9 per cent, 4.2 per cent and 4.8 per cent as compared to July 2018.

The cumulative growth in these three sectors from April to July 2019 over the corresponding period of 2018 has been 3.4 per cent, 2.8 per cent and 6.6 per cent respectively.

Retail inflation rose marginally to 3.21 per cent in August from 3.15 per cent last month on the back of higher food prices, the government data showed on Thursday.

August’s Consumer Price Index (CPI) food price inflation stood at 2.99 per cent as compared to 2.36 per cent month-on-month, said a statement issued by the Ministry of Statistics and Programme Implementation.

This is the 13th straight month where inflation has remained below the Reserve Bank of India’s (RBI) medium-term target of 4 per cent.

In August last year, however, the consumer price index stood at 3.69 per cent.

Food prices accounting for about half of the inflation basket have been rising mainly due to the impact of uneven monsoon rainfall across the country.(ANI)

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