Context: After growing in December, India’s industrial production slipped into negative territory again in January, posting a contraction of 1.6 per cent due to weak manufacturing, capital goods, and mining output, data released by the National Statistical Office (NSO).

Details:

• Retail inflation data released separately showed the headline number rising to a three-month high of 5.03 per cent in February from a 16-month low of 4.06 per cent in January, mainly due to a surge in year-on-year food inflation, which increased to 3.87 percent.
• The sharp pickup in inflation is an indication that the central bank may need to have another look at its accommodative stance going forward.
• A bumper kharif crop and rising prospects of a good rabi harvest were expected to be the benign factors, while price pressures were seen from pulses, edible oils, spices, and non-alcoholic beverages.
• The Index of Industrial Production (IIP) had recorded a growth of 1.0 per cent in December, which has now been revised to growth of 1.6 per cent. Factory output had grown by 2.2 per cent in January last year.

https://indianexpress.com/article/business/economy/factory-output-slips-negative-retail-inflation-rising-7226080/

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