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HomeNewsRetail inflation at 5-month low, IIP hits 4-month high

Retail inflation at 5-month low, IIP hits 4-month high

NEW DELHI:

Retail inflation

eased to a five-month low in March on the marginally moderating

food inflation

, while

industrial output growth

rebounded to a four-month high in Feb, led by robust infra sectors and consumer durables output.
Data released by the

National Statistical Office

, nearly an hour late from the official release time, showed retail inflation, as measured by the

Consumer Price Index

, rose an annual 4.9% in March, lower than the 5.1% in Feb.

Rural inflation was higher at 5.5% while urban was at 4.1%. The food price index was marginally lower at 8.5% in March compared with 8.7% in the previous month.

Screenshot 2024-04-13 043700

Vegetables prices rose an annual 28.3% in March while pulses and product prices remained stubborn at 17.7% keeping up the pressure.

“We estimate the food & beverages inflation to remain above the 7% mark in April 2024. An intensification of the impending heatwave may worsen the seasonal uptick in prices of perishables, heightening the criticality of a favourable monsoon in 2024 to keep food inflation in check and inflationary expectations well-anchored,” said Aditi Nayar, chief economist at ratings agency Icra.
Separate data released by the NSO showed industrial output growth rose an annual 5.7%, higher than the 4.1% in Jan, helped by the base effect.