Retail Inflation Relaxes to 6.59% in February as Against 7.59% in January; Industrial Output Surges by 2%

New Delhi, March 12: Consumer Price Index (CPI) based inflation relaxed to 6.59 percent in February, as compared to 7.59 percent in January, said the data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday. A separate set of data released by the Ministry showed Index Industrial Production (IIP) rising by 2 percent in the month of January. IMF Calls for Urgent and Quick Action by Indian Government to Tackle Economic Slowdown.

While the recovery of industrial output signals a resurgence in economic activity amid the ongoing slowdown, the ease in retail inflation may point towards a weakening consumer demand. The 6.59 percent CPI inflation rate is, however, higher than the 6 percent-benchmark kept by the Reserve Bank of India (RBI).

On year-on-year, the February inflation rate is way higher than what the MoSPI had recorded in the same month last year. The retail inflation had in February 2019 soared by only 2.57 percent, with vegetable prices recording a slump of - 0.73 percent.

On the contrary, vegetable prices have soared at an alarming rate in February this year, with the rates soaring by 31.61 per cent year-on-year basis. The prices of pulses have surged by 16.61 percent, spices by 8.80 percent, whereas, meat and fish have turned costlier by 10.20 percent.

The data on IIP showed the industrial output moving into a  positive trajectory, but remains way lower on year-on-year basis. As per the data released by the Statistics Ministry, the industrial output grew at 0.5 percent in the period between April 2019-January 2020. In the corresponding period last year, the IIP grew at 4.4 percent.

(The above story first appeared on LatestLY on Mar 12, 2020 06:44 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).