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India's factory output rises, so does inflation

Annual food inflation for June rose 7.79 per cent against 7.47 per cent in May

Policy Pulse
Publish Date: Jul 13 2016 10:41AM | Updated Date: Jul 13 2016 12:12PM

India's factory output rises, so does inflation

 High food prices raised India's annual retail inflation to 5.77 per cent in May, even as the country's factory output increased  by 1.2 per cent in June against a fall of 1.3 per cent in the month before, official data has showed.

As per the Central Statistics Office (CSO) data on Consumer Price Index (CPI), the annual food inflation for June rose  7.79 per cent against 7.47 per cent in May. In urban India, the annual food inflation was 8.16 per cent, against 7.61 per cent in rural areas.
What have also continued to affect people is high prices of pulses. The annual inflation for this category was 26.86 percent. The similar annual inflation for vegetables was 14.74 per cent, while that for sugar was 16.79 percent.
As far as the numbers on Index of Industrial Production (IIP) are concerned, what should come as some respite is the marginal rise of 0.7 per cent in the manufacturing index during the month under review. May had seen manufacturing index fall by 3.7 per cent.
Other two major sub-indices -- those for mining and electricity -- also rose by 1.3 per cent and 4.7 per cent respectively. In April, though, the growth was lower at 1.1 per cent for mining, but significantly higher at 14.6 per cent for electricity. 
"In terms of industries, 14 out of the 22 industry groups in the manufacturing sector have shown a positive growth during the month of May as compared to the corresponding month of the previous year," an official statement said.