Inflation and Industrial Production Data – June 2024

In June 2024, India’s retail inflation reached a four-month high of 5.08%, driven by a sharp rise in food prices, particularly vegetables, amidst extended heatwave conditions. This surge marks the 57th consecutive month above the RBI’s 4% target range, limiting immediate prospects for interest rate cuts.

Key Points

  • Food inflation rose to 9.36%, the highest in six months, with vegetables recording a notable increase.
  • Core inflation remained steady at 3.14%, indicating sustained pressures despite moderate non-food inflation.

Regional Variations

  • Several states, including Odisha and Bihar, reported inflation rates higher than the national average.

Index of Industrial Production (IIP) Hits Seven-Month High

India’s IIP grew by 5.9% in May 2024, the highest since October 2023, propelled by increased manufacturing and electricity production amidst rising demand during the heatwave.

Sectoral Insights

  • Manufacturing output expanded by 4.6%, with significant contributions from consumer durables.
  • Electricity generation surged by 13.7%, reflecting heightened power demand.

Segment Analysis

  • Capital goods production grew modestly at 2.5%, while consumer non-durables saw subdued growth at 2.3%.

Implications and Outlook

The latest economic data underscores challenges for monetary policy, with inflationary pressures from food prices likely to influence RBI’s upcoming decisions. The industrial growth, while positive, faces uncertainties amid persisting inflationary trends.

Piyush Shukla

Recent Posts

December 25th Current Affairs Challenge

Exams such as SSC, Banking, Railways, and state-level tests offer paths to prestigious positions in…

5 hours ago

What is the Old Name of Mysore?

Mysore, a city in the southern state of Karnataka, India, is famous for its rich…

18 hours ago

India Squad For Champions Trophy 2025

The upcoming Champions Trophy 2025 marks the ninth edition of the ICC Champions Trophy, featuring…

18 hours ago

ICC Champions Trophy Schedule 2025 Announced- India vs Pakistan

The 2025 ICC Champions Trophy is set to mark the ninth edition of this prestigious…

18 hours ago

Who is Known as the Father of Indian Nuclear Program?

India's nuclear program focuses on using nuclear energy for peaceful purposes, like producing electricity and…

19 hours ago

What is the Other Name of Sambhal District of Uttar Pradesh?

Uttar Pradesh, located in northern India, is the country's most populous state. Known for its…

20 hours ago