India Markets open in 15 mins

Retail inflation spikes to 7-month high of 3.05% in May on costlier food articles; factory output grows 3.4% in April

FP Staff
The previous high was in October 2018, when the retail inflation print came in at 3.38 percent.

Retail inflation spiked to a seven-month high of 3.05 percent in May mainly due to costlier food items, government data showed on Wednesday.

Meanwhile, industrial production grew at a six-month high of 3.4 percent in April mainly on account of improvement in mining and power generation, reported PTI citing official data released on Wednesday.

The consumer price index (CPI) based retail inflation for April was revised marginally upwards to 2.99 percent from the earlier estimate of 2.92 percent, data released by the Central Statistics Office (CSO) showed.

Retail inflation stood at 4.87 percent in May 2018.

The previous high was in October 2018, when the retail inflation print came in at 3.38 percent.

As per the data, inflation in the food basket rose to 1.83 percent in May, higher than 1.1 percent in April.

Retail inflation is a crucial data point, keenly watched by the Reserve Bank of India (RBI) while deciding its monetary policy.

On the other hand, the Index of Industrial Production (IIP) had expanded by 4.5 percent in April 2018.

The expansion in the mining sector was 5.1 percent compared to 3.8 percent in the year-ago month.

Similarly, the growth in the power sector was 6 percent in April as against 2.1 percent in the corresponding month of the last fiscal.

However, there was a slowdown in the manufacturing sector.

The previous high in industrial growth was recorded at 8.4 percent in October 2018.

€" With PTI inputs

Also See: Retail inflation likely hit seven-month high in May on rising food prices; still below RBI target: Poll

Analysts believe Reserve Bank of India will cut rates in June, but split on if it should: Poll

RBI cuts repo rate for third time in a row this year; other highlights of central bank's monetary policy statement

Read more on Business by Firstpost.