New Delhi. The economy, which is coming out of the pressure of the epidemic, has got a double booster today. According to the data released today, industrial production grew by 12 percent in August. In the month of September, the inflation rate came down to below 5 percent. An increase in industrial production and inflation in a controlled range are considered the best signs for the economy. According to the data, the increase in production in the mining and electricity sectors has seen an increase in IIP on one hand, while on the other hand the retail inflation has also come down due to the softening of food prices.
increase in industrial production
The country’s industrial production (IIP) grew by 11.9 percent in August. This information was given in the official figures released on Tuesday. The growth rate of production in the manufacturing sector stood at 9.7 per cent in August, 2021. According to data released by the National Statistical Office (NSO), production in the mining sector grew by 23.6 per cent and that of the power sector by 16 per cent in August. Industrial production declined by 7.1 percent in August 2020. In the first five months of the current financial year, April-August, the IIP has grown by 28.6 percent. This resulted in a 25 per cent decline in IIP in the same period of the previous financial year. Industrial production has been affected since March last year due to the corona virus epidemic. At that time it had fallen by 18.7 percent. Industrial production decreased by 57.3 percent in April 2020 due to the lockdown affecting industrial activities.
Retail inflation at 4.5 per cent in September
Retail inflation eased to 4.35 per cent in September due to lower food prices. According to government data released on Tuesday, the Consumer Price Index (CPI) based inflation stood at 5.30 per cent in August and 7.27 per cent in September 2020. According to the National Statistical Office (NSO) data, inflation in food articles moderated to 0.68 per cent in September this year. This is much lower than the 3.11 per cent in the previous month. While considering the bi-monthly monetary policy review, the Reserve Bank of India primarily considers inflation based on the Consumer Price Index. The government has mandated the central bank to keep retail inflation at 4 per cent with 2 per cent variation. RBI has projected CPI based inflation at 5.3 per cent for 2021-22. It is estimated to be at 5.1 per cent in Q2 of the current fiscal, 4.5 per cent in Q3 and 5.8 per cent in Q4 with a balanced risk appetite.
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