Retail Inflation

Retail inflation rises sharply to 5.59% in Dec; IIP grows 1.4% in Nov

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admin January 14, 2022
Updated 2022/01/14 at 2:51 PM

Retail inflation in India jumped to 5.59% in December from 4.91% in November, due to higher costs of manufactured goods, according to official statistics issued on Wednesday.

Inflation was 4.59% in the previous year, according to the Consumer Price Index (CPI).

Inflation in the food sector rose to 4.05% in December, up from 1.87% in November.

In a Reuters survey, analysts anticipated annual inflation of 5.8%.

Despite the fact that inflation is much higher, it remains within the Reserve Bank of India’s (RBI) target range of 2% to 6%.

While today’s CPI print suggests that the seasonal decline in food prices has begun to materialise, the unfavourable base and elevated core inflation, combined with continued supply-side bottlenecks due to Omicron, will keep the headline print elevated by around 5% for the next few months, said Garima Kapoor, Elara Capital’s Economist-Institutional Equities.

Meanwhile, according to data issued by the Ministry of Statistics and Programme Implementation, industrial output increased by 1.4% in November, compared to 1.6% in the same month the previous year (MoSPI). In October, IIP increased by 3.2%.

In November, the mining industry expanded by 5%, compared to a decrease of 5.4% in the same month the previous year.

Meanwhile, manufacturing sector growth slowed to 0.9% in November, compared to 1.6% in the same month the previous year.

 

Source: Mint

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