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Retail inflation eases to 4.4% in February; IIP grows 7.5% in January

Retail inflation eases to 4.4% in February; IIP grows 7.5% in January

Meanwhile, the Consumer Price Index inflation for February fell to 4.44% for February 2018 compared to the same month in 2017. The RBI in its monetary policy review last month had estimated retail inflation at 5.1% for January-March 2018.

The Index of Industrial Production (IIP) had grown at 7.1 percent in December 2017, according to the data released by the Central Statistics Office (CSO) today.

As per use-based classification, the growth rates in January 2018 over January 2017 are 5.8 percent in primary goods, 14.6 percent in capital goods, 4.9 percent in intermediate goods and 6.8 percent in infrastructure/construction goods.

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

Besides, industry bodies yet again nudged the RBI to lower interest rate as retail inflation fell to a 4-month low of 4.44 percent in February.

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Some consumer prices that skyrocketed in January probably returned to Earth in February, indicating fears of runaway US inflation that jarred financial markets were overblown.

India's annual consumer price inflation remained steady in September from the.

The IIP growth in January this year was mainly on account of up-tick in manufacturing sector which constitutes 77.63 percent of the index. "Domestic pump prices of petrol and diesel rose sharply in January, reflecting lagged pass-through of the past increases in worldwide crude oil prices".

On the other hand, the industry group "Manufacture of tobacco products" has shown the highest negative growth of (-) 46.5 percent followed by (-) 32.4 percent in "Other manufacturing" and (-) 13.2 percent in "Printing and reproduction of recorded media". Food price inflation was at 4.7% in January.

While the price rise in food segment was 3.26% in February, it was 17.57% in vegetables.