Inflation fire continues to burn; Feb retail figure rises to 10.91%
14 March 2013 4:23 AM IST
Retail inflation moved up for the fifth consecutive month to 10.91 per cent in February —remaining in the double-digit terrain for third month in a row — on account of higher prices of vegetables, edible oil, cereals and protein-based items.
It was 10.79 per cent in January. The inflation crossed doubled digit mark in December at 10.56 per cent, against 9.90 per cent in November.The vegetables basket in February recorded the highest inflation of 21.29 per cent among all the constituents that make the Consumer Price Index (CPI), according to the data released on Tuesday.
That was followed by cereals wherein inflation was 17.04 per cent. Egg, meat and fish became costlier by 15.72 per cent during the month. Inflation in oils and fats segment stood at 14.56 per cent.
Besides, pulses became dearer by 12.39 per cent and sugar turned more expensive by 12.10 per cent on an annual basis.
Clothing and footwear witnessed 10.87 per cent increase in prices during the month.In urban areas, retail inflation rose to 10.84 per cent in February from 10.73 per cent in the previous month. The CPI for rural population increased to 11.01 per cent during the month from 10.88 per cent in January.
The data for wholesale price index (WPI)-based inflation is expected on Thursday. The WPI figures for January stood at 6.62 per cent, much higher than the Reserve Bank of India's comfort level of 5-6 per cent. The Reserve Bank of India (RBI) is scheduled to announce mid-quarter review of monetary policy next week.
It is widely expected that the central bank will further ease the policy to boost economic growth which touched a decade low of 4.5 per cent in the third quarter of the current fiscal.
In its monetary policy last month, RBI had slashed the key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to perk up growth through reduced cost of borrowing.
The Reserve Bank of India (RBI) has forecast the March-end wholesale price index inflation to be 6.8 per cent.
INDUSTRIAL OUTPUT REVERSES TWO-MONTH DECLINE, GROWS 2.4% IN JANUARY
After declining for two months in a row, industrial output in January grew by 2.4 per cent, showing signs of recovery on account of better performance of manufacturing and power sectors even as pressure mounted on RBI to cut interest rates to spur growth. Not impressed by fragile indications of recovery, Finance Ministry and India Inc sought to impress upon the Reserve Bank to lower interest rates next week to boost industrial growth.
The factory output, as measured by the Index of Industrial Production (IIP) had grown by 1 per cent in January, 2012. It had contracted by 0.8 per cent in November and 0.5 per cent in December.
As per the IIP data, the industrial production has recorded an increase of 1 per cent during the 10-month period (April-January 2012-13), down from 3.4 per cent in the same period of 2011-12.
Meanwhile, the decline in industrial output for December 2012 has been revised slightly upward to 0.5 per cent from a contraction of 0.6 per cent as per provisional estimates released last month. According to the data, manufacturing sector, which constitutes over 75 per cent of the index, grew by 2.7 per cent in January, as against 1.1 per cent in the same month of 2012.
Growth in the output of the key sector remained low at 0.9 per cent in the April-January period this fiscal, as against 3.7 per cent in the same period in 2011-12.
Power generation has increased by 6.4 per cent in January compared to 3.2 per cent growth in January, 2012.The mining output in January this year contracted by 2.9 per cent, compared to a decline in production by 2.1 per cent in the same month in 2012.
It was 10.79 per cent in January. The inflation crossed doubled digit mark in December at 10.56 per cent, against 9.90 per cent in November.The vegetables basket in February recorded the highest inflation of 21.29 per cent among all the constituents that make the Consumer Price Index (CPI), according to the data released on Tuesday.
That was followed by cereals wherein inflation was 17.04 per cent. Egg, meat and fish became costlier by 15.72 per cent during the month. Inflation in oils and fats segment stood at 14.56 per cent.
Besides, pulses became dearer by 12.39 per cent and sugar turned more expensive by 12.10 per cent on an annual basis.
Clothing and footwear witnessed 10.87 per cent increase in prices during the month.In urban areas, retail inflation rose to 10.84 per cent in February from 10.73 per cent in the previous month. The CPI for rural population increased to 11.01 per cent during the month from 10.88 per cent in January.
The data for wholesale price index (WPI)-based inflation is expected on Thursday. The WPI figures for January stood at 6.62 per cent, much higher than the Reserve Bank of India's comfort level of 5-6 per cent. The Reserve Bank of India (RBI) is scheduled to announce mid-quarter review of monetary policy next week.
It is widely expected that the central bank will further ease the policy to boost economic growth which touched a decade low of 4.5 per cent in the third quarter of the current fiscal.
In its monetary policy last month, RBI had slashed the key interest rates by 0.25 per cent and released Rs 18,000 crore additional liquidity into the system to perk up growth through reduced cost of borrowing.
The Reserve Bank of India (RBI) has forecast the March-end wholesale price index inflation to be 6.8 per cent.
INDUSTRIAL OUTPUT REVERSES TWO-MONTH DECLINE, GROWS 2.4% IN JANUARY
After declining for two months in a row, industrial output in January grew by 2.4 per cent, showing signs of recovery on account of better performance of manufacturing and power sectors even as pressure mounted on RBI to cut interest rates to spur growth. Not impressed by fragile indications of recovery, Finance Ministry and India Inc sought to impress upon the Reserve Bank to lower interest rates next week to boost industrial growth.
The factory output, as measured by the Index of Industrial Production (IIP) had grown by 1 per cent in January, 2012. It had contracted by 0.8 per cent in November and 0.5 per cent in December.
As per the IIP data, the industrial production has recorded an increase of 1 per cent during the 10-month period (April-January 2012-13), down from 3.4 per cent in the same period of 2011-12.
Meanwhile, the decline in industrial output for December 2012 has been revised slightly upward to 0.5 per cent from a contraction of 0.6 per cent as per provisional estimates released last month. According to the data, manufacturing sector, which constitutes over 75 per cent of the index, grew by 2.7 per cent in January, as against 1.1 per cent in the same month of 2012.
Growth in the output of the key sector remained low at 0.9 per cent in the April-January period this fiscal, as against 3.7 per cent in the same period in 2011-12.
Power generation has increased by 6.4 per cent in January compared to 3.2 per cent growth in January, 2012.The mining output in January this year contracted by 2.9 per cent, compared to a decline in production by 2.1 per cent in the same month in 2012.
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