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Retail inflation eases to 3.69% in August
Why in the news ?
- Continuing the slide for the second straight month, retail inflation eased to a 10-month low of 3.69 per cent in August due to base effect and a fall in prices in the food category, especially fruits and vegetables.
Details
- As per data released by the Ministry of Statistics and Programme Implementation, retail inflation stood at 4.17% in July 2018 and 3.28% in August 2017.
- Within the index, food and beverage category inflation fell to 0.85% as compared with 1.73% in July 2018.
- This was driven by a sharp decline in prices of fruits, vegetables, eggs, pulses and sugar and confectionery products.
- However, fuel and light inflation stood at 8.47% in August, up from 7.96% in July.
- Going ahead, however, economists said weaker rupee and high crude oil prices will put pressure on inflation rate.
IIP growth slows
- As per the CSO data, Industrial output growth inched lower to 6.6 per cent in July from 6.9 per cent a month ago.
- Weaker growth in capital goods and intermediate goods even as manufacturing and consumer durables kept up the momentum.
- The manufacturing sector, which constitutes more than 77 per cent of the index, recorded a growth of 7 per cent in July.
IIP :
- The Index of Industrial Production (IIP) is the number denoting the condition of industrial production during a certain period.
- IIP shows the status of industrial activity, you can find out if the industrial activity has increased, decreased or remained same.
- It dose not consider measuring of informal sector activity . Same with the PMI
Source
The Hindu.