A rise in vegetables, as well as food prices, pushed up retail inflation rate further to 3.05 per cent in May, according to government data released on Wednesday.
A rise in vegetables, as well as food prices, pushed up retail inflation rate further to 3.05 per cent in May, according to government data released on Wednesday. This is the fourth month of rise in the rate. Retail inflation rose in the last month, mainly due to spike in food prices, the data released by the Central Statistics Office (CSO) said. The CPI-based inflation in April was revised marginally upwards to 2.99 per cent from the earlier estimate of 2.92 per cent, the data showed.
A poll of CNBC TV18 analysts had precited May CPI inflation at 3.10 per cent. While vegetables inflation stood at 5.46 per cent as against 2.87 per cent (MoM), the consumer food price inflation was at 1.83 per cent as against 1.1 per cent (MoM).
The RBI has fixed 4 per cent as a target for inflation rate. The Reserve Bank of India (RBI) mainly factors in the CPI-based inflation while arriving at its monetary policy.In its June monetary policy, the RBI cut the interest rate by another 25 basis points (100 basis points equal to one per cent). it was the third successive rate cut by the central bank.
Industrial production grew at a six-month high of 3.4 per cent in April mainly, owing to an improvement in mining and power generation. The IIP had expanded by 4.5 per cent in April 2018. The Index of Industrial Production (IIP) had contracted by 0.1 per cent in the previous month.
Meanwhile, the Gross Domestic Product (GDP) growth rate had fallen from 7.2 per cent in FY18 to 6.8 per cent in FY19, on account of weak performance in agriculture and manufacturing sectors, the recently released government data showed. In the fourth quarter of FY19, the GDP growth fell below 6 per cent. In March quarter last year, Indian GDP grew at 8.1 per cent. This year, the growth rate slumped to 5.8 per cent, the data showed.