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India's retail inflation down

Annual food inflation was 6.32 percent in rural areas and 5.10 per cent in the urban conclaves

Policy Pulse
Publish Date: Sep 13 2016 3:21PM | Updated Date: Sep 13 2016 3:21PM

India's retail inflation down

File Photo: AP

 

The annual retail inflation of the country eased by 100 basis points to 5.05 per cent in August, but factory output fall to a negative growth of (-)2.4 per cent in July from an growth of 1.95 percent in the month before, official data has showed.

 
As per data released by the Central Statistics Office (CSO), the fall in retail inflation was thanks to a rather sharp drop in the annual food inflation -- from 8.35 per cent in July to 5.91 per cent in August.
 
As far as factory output is concerned, the drag was because of negative growth of (-)3.4 percent in the manufacturing sub-index, which enjoys maximum weight in the main index, even while growth rates in mining and electricity indices were also shy.
 
In May, the factory output was up 1.1 per cent, whereas in April it took a hit of (-)1.4 per cent.
 
 In July 2015, there was a growth of 4.3 per cent. 
 
The data showed  that the annual retail inflation for rural India was 5.87 percent, while that for the urban centres was 4.22 percent.
 
Annual food inflation was 6.32 percent in rural areas and 5.10 per cent in the urban conclaves. 
 
Data also showed that prices of sugar and confectionery rose by 24.75 percent on a year-on-year (YoY) basis, however cost of pulses was up by 20.01 per cent.
 
In states, retail inflation was lowest in Assam at 3.39 percent. It was followed by Himachal Pradesh at 3.75 percent, and Uttarakhand at 3.89 percent.