Factory production up 7.5% in January, February inflation eases

Analysts expect food inflation to rise because of the seasonal upturn in vegetable prices in summer an increase in minimum support price of summer crops that will reflect with a lag and an upswing in global wheat prices

Consumer price inflation (CPI) was at 5.07% in January.

The Index of Industrial Production (IIP), however, rose marginally over the 7.1 per cent registered in December 2017, a Central Statistics Office (CSO) release said here.

Milk and its products too were less expensive with inflation print of 4.21 per cent, cereals and products at 2.10 per cent, meat & fish at 3.31 per cent while for eggs the prices grew at a slower pace of 8.51 per cent.

The manufacturing sector grew 8.7 per cent in January, and 10.7 per cent and 8.4 per cent in November and December, respectively.

In a sustained improvement in economic conditions, retail inflation in February eased as food prices softened, while industrial production soared in January.

Retail inflation eased for the second straight month in February to 4.44%, as food prices came down, government data showed today.

Dutch industrial production expanded at the quickest pace in nearly seven years in January, figures from the Central Bureau of Statistics showed Monday. However, the inflation moved up for pulses and products (-) 17.35% and spices (-) 1.01% in February 2018.

The January IIP was also boosted by a higher offtake of consumer and capital goods. However, growth in the mining sector was muted in January 2018.

Prices of pan, tobacco and intoxicants rose by 7.34%.

However, Assocham Secretary General D S Rawat said it would be safe to assume that a lot of advantage has accrued because of the low base effect of the previous year when the growth had plunged following demonetisation. The capital goods sector continued to witness strong growth of 14.6% in January, although this was lower than the 16.44% seen in the previous month. The RBI in its monetary policy review last month had estimated retail inflation at 5.1% for January-March 2018. "However, the momentum of the recovery needs to be sustained through effective implementation of the structural and infra related reforms".

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