Rajan’s rate hike gambles pull inflation to 2-yr low
13 Feb 2014 6:55 AM IST
Inflation as measured by the Consumer Price Index (CPI) for December was 9.87 per cent down from 11.16 per cent in the previous month.
Inflation in the food and beverages segment was 9.9 per cent in January compared to 12.16 per cent in the previous month, as per the official data released today. It is lowest rate of inflation since 7.65 per cent in January 2012.
Vegetable prices on annual basis rose 21.91 per cent in January, a slower pace than 38.76 per cent recorded in the previous month, it said. Fruit prices rose 15.6 per cent as compared to 14.64 per cent in December.
Pulses were dearer by 2.59 per cent, cereals by 11.42 per cent and milk products by 9.82 per cent in January.Protein-rich items such as eggs, meat and fish became dearer by 11.69 per cent in January. The rate of inflation in this segment was slightly higher at 12.64 per cent in December.
The retail inflation was in double digits in October and November. The data showed that the provisional inflation for rural and urban areas for January was 9.43 per cent and 8.09 per cent, respectively. Data on inflation based on the wholesale price index is scheduled for release on Friday. The Reserve Bank factors both, retail and wholesale price based, inflation data in its monetary policy.
Recently, a RBI appointed committee has suggested the central bank should focus on CPI inflation and aim to bring it down to 8 per cent by January next year, and to 6 per cent by January 2016.
Shifting its stance of monetary policy towards targeting retail inflation, the RBI in its monetary policy said inflation an ‘inequitable tax’ and may exceed 8 per cent by March end.
... But December factory output contracts 0.6%
New Delhi: Showing no signs of recovery, industrial production growth rate remained negative for the third month in a row, contracting 0.6 per cent in December 2013, mainly due to sluggishness in manufacturing sector.
During December 2012 as well, the factory output, as measured in terms of the Index of Industrial Production (IIP), had contracted by 0.6 per cent. Meanwhile, contraction in IIP during November 2013 has been revised to 1.3 per cent, from the provisional estimate of 2.1 per cent dip. The decline in factory output, which began in October with IIP contracting by 1.6 per cent, continued in December, as per the government data released on Wednesday. Industrial output for the April-December period of this fiscal, has thus contracted by 0.1 per cent, compared to growth of 0.7 per cent in the same period of 2012-13. The manufacturing sector, which constitutes over 75 per cent of the index, declined by 1.6 per cent in December, as against a contraction of 0.8 per cent in the year-ago period.
During April-December, the sector's output contracted 0.6 per cent compared to a growth of 0.6 per cent in same period in 2012. Overall, the consumer goods output declined by 5.3 per cent in December, compared to a contraction of 3.6 per cent in the same month in 2012. During April-December, 2013-14, the consumer goods output contracted by 3 per cent, compared to 2.7 per cent growth in the corresponding period in 2012-13. The consumer durables segment contracted by 16.2 per cent in December as against a decline of 8.1 per cent in the same month in 2012.
Inflation in the food and beverages segment was 9.9 per cent in January compared to 12.16 per cent in the previous month, as per the official data released today. It is lowest rate of inflation since 7.65 per cent in January 2012.
Vegetable prices on annual basis rose 21.91 per cent in January, a slower pace than 38.76 per cent recorded in the previous month, it said. Fruit prices rose 15.6 per cent as compared to 14.64 per cent in December.
Pulses were dearer by 2.59 per cent, cereals by 11.42 per cent and milk products by 9.82 per cent in January.Protein-rich items such as eggs, meat and fish became dearer by 11.69 per cent in January. The rate of inflation in this segment was slightly higher at 12.64 per cent in December.
The retail inflation was in double digits in October and November. The data showed that the provisional inflation for rural and urban areas for January was 9.43 per cent and 8.09 per cent, respectively. Data on inflation based on the wholesale price index is scheduled for release on Friday. The Reserve Bank factors both, retail and wholesale price based, inflation data in its monetary policy.
Recently, a RBI appointed committee has suggested the central bank should focus on CPI inflation and aim to bring it down to 8 per cent by January next year, and to 6 per cent by January 2016.
Shifting its stance of monetary policy towards targeting retail inflation, the RBI in its monetary policy said inflation an ‘inequitable tax’ and may exceed 8 per cent by March end.
... But December factory output contracts 0.6%
New Delhi: Showing no signs of recovery, industrial production growth rate remained negative for the third month in a row, contracting 0.6 per cent in December 2013, mainly due to sluggishness in manufacturing sector.
During December 2012 as well, the factory output, as measured in terms of the Index of Industrial Production (IIP), had contracted by 0.6 per cent. Meanwhile, contraction in IIP during November 2013 has been revised to 1.3 per cent, from the provisional estimate of 2.1 per cent dip. The decline in factory output, which began in October with IIP contracting by 1.6 per cent, continued in December, as per the government data released on Wednesday. Industrial output for the April-December period of this fiscal, has thus contracted by 0.1 per cent, compared to growth of 0.7 per cent in the same period of 2012-13. The manufacturing sector, which constitutes over 75 per cent of the index, declined by 1.6 per cent in December, as against a contraction of 0.8 per cent in the year-ago period.
During April-December, the sector's output contracted 0.6 per cent compared to a growth of 0.6 per cent in same period in 2012. Overall, the consumer goods output declined by 5.3 per cent in December, compared to a contraction of 3.6 per cent in the same month in 2012. During April-December, 2013-14, the consumer goods output contracted by 3 per cent, compared to 2.7 per cent growth in the corresponding period in 2012-13. The consumer durables segment contracted by 16.2 per cent in December as against a decline of 8.1 per cent in the same month in 2012.
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