A tepid growth in manufacturing sector and an escalating inflation hit the economy in July. Retail inflation rose 6.07 percent in July, overshooting the government and central bank's comfort zone of 5 percent, even as manufacturing growth remained almost standstill at 0.9 percent in June.
The Index of Industrial Production (IIP) grew 2.1 percent, led by some growth in electricity and mining sectors. According to official data released on Friday, IIP's cumulative growth between April and June was 0.6 per cent against 3.3 per cent in the year-ago period.
More worrying was the Consumer Price Index-based inflation jumping to 6.07 percent in July against 5.77 per cent a month ago, led by higher food prices.
Food price inflation rose to 8.35 per cent in July against 7.79 per cent a month ago. It was a mere 2.15 percent in July 2015. CPI inflation in pulses (27.53 percent), sugar (21.91 percent) and vegetables (14.06 per cent) remained in double-digits.
Manufacturing still in doldrums
By IndianMandarins - 2016-08-13 11:00:31
A tepid growth in manufacturing sector and an escalating inflation hit the economy in July. Retail inflation rose 6.07 percent in July, overshooting the government and central bank's comfort zone of 5 percent, even as manufacturing growth remained almost standstill at 0.9 percent in June.
The Index of Industrial Production (IIP) grew 2.1 percent, led by some growth in electricity and mining sectors. According to official data released on Friday, IIP's cumulative growth between April and June was 0.6 per cent against 3.3 per cent in the year-ago period.
More worrying was the Consumer Price Index-based inflation jumping to 6.07 percent in July against 5.77 per cent a month ago, led by higher food prices.
Food price inflation rose to 8.35 per cent in July against 7.79 per cent a month ago. It was a mere 2.15 percent in July 2015. CPI inflation in pulses (27.53 percent), sugar (21.91 percent) and vegetables (14.06 per cent) remained in double-digits.
