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India’s Retail inflation is at 3-mth low to 5.1% in Jan, IIP witnessed 3.8% growth in Dec

In January 2024, India’s retail inflation reached a three-month low of 5.1%, while the Index of Industrial Production (IIP) exhibited a growth of 3.8% in December 2023, showcasing a favorable trend in both sectors.

Retail Inflation at 3-Month Low

  • Consumer Price Index (CPI) indicates a 5.1% year-on-year (Y-o-Y) retail inflation rate in January 2024, down from 5.69% in December and 6.52% in January last year.
  • Notable decline attributed to moderation in prices of cereals, milk, and fruit, while vegetables, pulses, and spices sustain double-digit inflation.
  • Protein-rich items like meat and eggs experience slight price acceleration.

Industrial Growth Resilience

  • Index of Industrial Production (IIP) grows by 3.8% Y-o-Y in December 2023, up from 2.4% in November, with manufacturing sector leading at 3.9% growth.
  • Mining sees 5.1% growth, while electricity lags at 1.2%, down from December 2022’s 5.1% growth.
  • Despite some sectors contracting, overall IIP indicates a revival in both urban and rural demand.

Sectoral Performance

  • Manufacturing: Majority of industries witness growth, only 11 out of 23 report contraction.
  • Use-Based Segment: Sequential moderation observed in primary and intermediate goods, while infrastructure, capital goods, and consumer durables witness acceleration, signaling demand revival in both urban and rural areas.

 

India's Retail inflation is at 3-mth low to 5.1% in Jan, IIP witnessed 3.8% growth in Dec_40.1

 

 

India's Retail inflation is at 3-mth low to 5.1% in Jan, IIP witnessed 3.8% growth in Dec_50.1

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