Inflation up for 4th straight month in January to 10.79%
13 Feb 2013 7:49 AM IST
Rising for the fourth consecutive month, retail inflation remained in double digits at 10.79 per cent in January, driven by higher prices of vegetables, edible oil, cereals and protein-based items.
The retail inflation had stood at 10.56 per cent in December, 9.90 per cent in November and 9.75 per cent in October, 2012.
The vegetables basket in January recorded the highest inflation of 26.11 per cent among all the constituents that make the Consumer Price Index (CPI), according to data released on Tuesday.
Vegetables were followed by the oil and fats segment at 14.98 per cent. Meat, fish and egg became 13.73 per cent more expensive during the month.
While, cereals and pulses became dearer by 14.90 per cent and 12.76 per cent respectively on an annual basis, sugar turned more expensive by 12.95 per cent.
Clothing and footwear witnessed 11 per cent increase in prices during the month.
In urban areas, retail inflation rose to 10.73 per cent in January from 10.42 per cent in the previous month. The CPI for rural population increased to 10.88 per cent during the month from 10.74 per cent in December.
The data for wholesale price index (WPI)-based inflation is expected on Thursday. The WPI figures for December stood at 7.24 per cent, much higher than Reserve Bank of India's comfort level of 5-6 per cent.
The Reserve Bank of India in its monetary policy last month had slashed its 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 RBI has forecast the March end wholesale price index inflation at 6.8 per cent. The rate of economic growth too has seen dismal forecasts over the past few weeks. year ago.
AS GOVT PLOTS BUDGET CUTS, INDUSTRIAL OUTPUT DIPS
Indicating persistent sluggishness in the economy, industrial output contracted by 0.6 per cent in December due to poor performance of manufacturing and mining sectors and decline in production of capital as well as consumer goods.
The industrial output, as measured by the Index of Industrial Production (IIP) had grown by 2.7 per cent in December, 2011.
Industrial production growth stood at 0.7 per cent during April-December period of this fiscal, down from 3.7 per cent in the same period of 2011-12, according to official data released here Tuesday.
Meanwhile the decline in industrial output for November 2012 has been revised downwards to 0.84 per cent from a contraction of 0.1 per cent in the month as per the provisional estimates released last month. The growth in industrial output for October last year has, however, been revised upward to 10.66 per cent from the first revision of 8.3 per cent released last month.
The manufacturing sector, which constitutes over 75 per cent of the index, registered a contraction of 0.7 per cent in December in 2012, as against a growth of 2.8 per cent in 2011. The growth in the output of the key sector remained low at 0.7 per cent in April-December last year as against 4 per cent growth in the same period of 2011. The mining output in December last year contracted by 4 per cent compared to a decline in production by 3.3 per cent in the same month in 2011. In April-December, the production in the sector declined by 1.9 per cent, against a contraction of 2.6 per cent in the year-ago period.
MEANWHILE, USA PATS MANMOHAN GOVT FOR REFORMS
A top US official while praising the recent steps taken by the Indian government said she hopes that New Delhi would continue with the reforms in particular in the infrastructure sector and financial markets.
‘I have been very favorably impressed by some of the recent reform efforts undertaken by the Indian government,’ the US Undersecretary of the Treasury for International Affairs Lael Brainard said.
The retail inflation had stood at 10.56 per cent in December, 9.90 per cent in November and 9.75 per cent in October, 2012.
The vegetables basket in January recorded the highest inflation of 26.11 per cent among all the constituents that make the Consumer Price Index (CPI), according to data released on Tuesday.
Vegetables were followed by the oil and fats segment at 14.98 per cent. Meat, fish and egg became 13.73 per cent more expensive during the month.
While, cereals and pulses became dearer by 14.90 per cent and 12.76 per cent respectively on an annual basis, sugar turned more expensive by 12.95 per cent.
Clothing and footwear witnessed 11 per cent increase in prices during the month.
In urban areas, retail inflation rose to 10.73 per cent in January from 10.42 per cent in the previous month. The CPI for rural population increased to 10.88 per cent during the month from 10.74 per cent in December.
The data for wholesale price index (WPI)-based inflation is expected on Thursday. The WPI figures for December stood at 7.24 per cent, much higher than Reserve Bank of India's comfort level of 5-6 per cent.
The Reserve Bank of India in its monetary policy last month had slashed its 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 RBI has forecast the March end wholesale price index inflation at 6.8 per cent. The rate of economic growth too has seen dismal forecasts over the past few weeks. year ago.
AS GOVT PLOTS BUDGET CUTS, INDUSTRIAL OUTPUT DIPS
Indicating persistent sluggishness in the economy, industrial output contracted by 0.6 per cent in December due to poor performance of manufacturing and mining sectors and decline in production of capital as well as consumer goods.
The industrial output, as measured by the Index of Industrial Production (IIP) had grown by 2.7 per cent in December, 2011.
Industrial production growth stood at 0.7 per cent during April-December period of this fiscal, down from 3.7 per cent in the same period of 2011-12, according to official data released here Tuesday.
Meanwhile the decline in industrial output for November 2012 has been revised downwards to 0.84 per cent from a contraction of 0.1 per cent in the month as per the provisional estimates released last month. The growth in industrial output for October last year has, however, been revised upward to 10.66 per cent from the first revision of 8.3 per cent released last month.
The manufacturing sector, which constitutes over 75 per cent of the index, registered a contraction of 0.7 per cent in December in 2012, as against a growth of 2.8 per cent in 2011. The growth in the output of the key sector remained low at 0.7 per cent in April-December last year as against 4 per cent growth in the same period of 2011. The mining output in December last year contracted by 4 per cent compared to a decline in production by 3.3 per cent in the same month in 2011. In April-December, the production in the sector declined by 1.9 per cent, against a contraction of 2.6 per cent in the year-ago period.
MEANWHILE, USA PATS MANMOHAN GOVT FOR REFORMS
A top US official while praising the recent steps taken by the Indian government said she hopes that New Delhi would continue with the reforms in particular in the infrastructure sector and financial markets.
‘I have been very favorably impressed by some of the recent reform efforts undertaken by the Indian government,’ the US Undersecretary of the Treasury for International Affairs Lael Brainard said.
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