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Inflation up, industrial growth slows :
Context
A separate government release showed that industrial activity growth slowed sharply in October to 2.24%
Retail Inflation
Retail inflation accelerated to 4.88% in November on the back of quickening food and oil price rises, according to official data released by the government.
Industrial activity growth slowed down
A separate government release showed that industrial activity growth slowed sharply in October to 2.24%.
Inflation by CPI
- Inflation as measured by the Consumer Price Index was at 3.58% in October.
- It quickened to 4.41% in the food and beverages category in November from 2.26% in October.
Fuel and Light segment
In the fuel and light segment it accelerated to 7.92% from 6.36% over the same period.
Volatility is due to food, says expert
- As retail inflation zoomed, experts attributed it to the rise in food and oil prices.
- If you look at the variance between RBI’s projections and actual inflation, it is primarily on account of food
- If you take out food, then their projections would come quite close.
Monetary Policy Committee
The Monetary Policy Committee in its latest policy review on December 6 kept rates unchanged and raised its inflation forecast for the second half of the financial year to 4.3-4.7%
Inflation in the housing segment
Inflation in the housing segment quickened to 7.36% in November from 6.68% in October, while the clothing and footwear segment saw a more modest acceleration, to 4.96% from 4.68% over the same period
Growth in the Index of Industrial Production
Growth in the Index of Industrial Production slowed sharply to 2.24% in October, down from 4.15% in September and 4.46% in August
Manufacturing Sector
The manufacturing sector saw growth slowing to 2.47% in October from 3.8% in September. While the infrastructure and construction goods sector saw growth accelerating to 5.21% from 0.4% over the same period, the consumer goods segment saw a sharp slowdown during this period—from 3.8% to 0.79%.
Consumer Durables
The consumer durables segment contracted for the second consecutive month, by 6.89% in October, compared to a contraction of 3.4% in September.
