New Delhi: India’s retail inflation surged to 6.21 per cent in October from 5.49 per cent in September led by food price pressures, yet again crossing the RBI’s upper comfort threshold of 4 per cent. Meanwhile, industrial output expanded by 3.1 per cent to -0.1 per cent in August, in a mixed bag for the Indian economy, according to official data.
The Consumer Food Price Index rose to 10.87 per cent in October from 9.24 per cent in September, indicating that food prices continue to spil RBI’s inflation forecasts. Inflation numbers must be seen against the backdrop of the repo rate which is monitored by the RBI’s monetary policy committee on a bi-monthly basis.
Consumer Price Index Numbers On Base 2012=100 For Rural, Urban and Combined for the Month of October 2024
Year-on-year inflation rate based on All India Consumer Price Index (CPI) for the month of October, 2024 is 6.21%. Corresponding inflation rates for rural and urban are… pic.twitter.com/Fvlj4jzpHz
— PIB India (@PIB_India) November 12, 2024
Given the current inflation spike, it remains to be seen whether the MPC will cut rates in the next meeting. While the repo rate has remained unchanged for over 7 cycles, the US and UK’s central banks have slashed their policy rates.
What IIP numbers show
While IIP growth has halved on a year-on-year basis to 3.1 per cent from 6.4 per cent in the year-ago period in Septmeber, the month-on-month expansion is encouraging. According to NSO data, mining, manufacturing and power sectors recorded growth in September.
India’s Index of Industrial Production recorded growth of 3.1% in September 2024
The growth rates of the three sectors, Mining, Manufacturing and Electricity for the month of September 2024 are 0.2 percent, 3.9 percent and 0.5 percent respectively
Read here:… pic.twitter.com/eWBLyi6vNs
— PIB India (@PIB_India) November 12, 2024
While manufacturing surged 3.9 per cent, mining was up 0.2 per cent, and power sector growth stood at 0.5 per cent during the period under consideration. April-September IIP growth stood at 4 per cent in 2024 compared to 6.2 per cent in the year-ago period.
While India’s retail inflation surged to 6.1 per cent in October, industrial output expanded by 3,1 per cent, in a mixed bag for the Indian economy, according to official data. Economy Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
