Inflation eases slightly to 5.59% as food prices fall
With a continuing low base effect, India’s factory output saw a 13.6 per cent growth year-onyear in June, against a 28.6 per cent rise in May, while retail inflation marginally eased to 5.59 per cent in July, on the back of softening food prices. It was 6.2 per cent in June, according to two separate sets of government data released on Thursday.
For industrial output, the data showed that it had been contracting till February this year but jumped sharply since then due to a continuing low base effect. The industrial output also saw a massive 134 per cent jump in April, but compared with the May 2019 figure, the IIP showed a fall of 13.4 per cent. “Major sectors like mining, manufacturing and electricity grew at 23.1 per cent, 13 per cent and 8.3 per cent respectively,” the data showed.
It has been seen the abrupt halt to all industrial activity a year ago due to the Covid-induced nationwide lockdown mostly impacted manufacturing activities.
Helped by a low base effect, India’s factory output witnessed a 13.6 per cent growth year-on-year in June, against a 28.6 per cent rise in May, while retail inflation marginally eased to 5.59 per cent in July on the back of softening food prices. It was 6.2 per cent in June, according to two separate government data released on Thursday.
For industrial output, the data showed that it had been contracting till February this year, but has jumped sharply since then due to a continuing low base effect. The industrial output witnessed a massive 134 per cent jump in April.
In June 2021, the Index of Industrial Production stood at 122.6 points compared to 107.9 point in the same month last year. The index was at 129.3 points in June 2019.
The major sectors like mining, manufacturing and electricity grew at 23.1 per cent, 13 per cent and 8.3 per cent, respectively.
Retail inflation in July eased to 5.59 per cent from 6.26 per cent in June and 6.73 per cent in July 2020. "The inflation in the food basket slowed down to 3.96 per cent in July from 5.15 per cent in the previous month," data showed.s