IIP growth likely to remain 1-2% in January: Dun & Bradstreet report
According to the research firm, though the government has already started taking measures and the RBI has initiated easing the monetary policy, its impact on the industrial activity is likely to take some time.
"IIP is expected to remain volatile and IIP growth is expected to remain in the range of 1-2 per cent during January," the report said.
The industrial output contracted by 0.6 per cent in December registering the second consecutive month of decline.
"The sustained volatility in the industrial activity indicates that the revival in growth would be delayed than expected.
"This raises hope that the RBI would continue to ease its monetary policy to boost confidence and support the industrial activity going ahead," Dun & Bradstreet India Senior Economist Arun Singh said.
The report further said that while the moderation in the consumption demand is expected to slow down the manufactured products inflation, upside risks to overall inflation in the medium term persists from the gradual hike in the diesel
prices and increase in global crude oil prices.
D&B expects the WPI inflation to remain in the range of 6.3-6.5 per cent in February 2013 and CPI inflation continuing to hover above the double digit at around 10.7 per cent-10.9 per cent in January.
"The divergence in the WPI and CPI inflation points to the prevalence of
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