Consumer price index (CPI)-based inflation remained above RBI’s comfort level for the second straight month despite a marginal decline of 6.26 per cent in June, while factory output rose 29.3 per cent in May, mainly due to the base effect. government figures show
A marginal decline in retail inflation was seen despite a slight firmness in food inflation, which rose to 5.15 per cent in June from 5.01 per cent a month ago. Retail inflation based on CPI stood at 6.3 per cent in May 2021 and 6.23 per cent in June 2020. As far as factory output is concerned, the index of industrial production rose sharply to 29.3 per cent in May as against a fall of 33.4 per cent in the same month of 2020. According to data on June CPI released by the National Statistical Office (NSO), inflation on an annual basis in the ‘oils and fats’ segment stood at 34.78 per cent in June.
While the rate of price increase in the fruit basket stood at 11.82 per cent, it contracted (-0.7 per cent) in vegetables. Inflation in the ‘fuel and light’ segment stood at 12.68 per cent. The government has mandated the RBI to keep retail inflation at 4 per cent with a margin of 2 per cent on either side.
NSO data showed industrial output grew 29.3 per cent in May, mainly on account of a low-base effect and good performance of manufacturing, mining and power sectors, but remained below pre-pandemic levels. According to the data released by NSO on Monday, the manufacturing sector has grown by 34.5 per cent in May this year.