India’s retail inflation eases to 4.59 pc in Dec, IIP contracts 1.9 pc

India’s retail inflation eased to 4.59 per cent in December from 6.93 per cent a month earlier on the back of drop in vegetable and food prices, government data showed on Tuesday.

A low base and softening of vegetable prices pulled down inflation, which is measured by the consumer price index (CPI). Inflation has been above the Reserve Bank of India’s limit of 6 per cent for the past eight months until November. In October, it peaked to 7.61 per cent and then fell to 6.93 per cent in November.

Meanwhile, the Index of Industrial Production (IIP) contracted by 1.9 per cent in November as against 3.6 per cent growth in October, according to data from the Ministry of Statistics and Programme Implementation.

It had grown at 3.6 per cent in October. The indices of industrial production for mining, manufacturing and electricity sectors for the month of November 2020 stand at 104.5, 128.4 and 144.8, according to an official statement.

As per used-based classification, the indices of IIP stand at 121.3 for primary goods, 84.6 for capital goods, 136.7 for intermediate goods and 135.5 for infrastructure and construction goods for November 2020.

Consumer durables and consumer non-durables stood at 115.9 and 149.1 respectively.

Mining and manufacturing output shrank by 7.3 per cent and 1.7 per cent respectively while electricity output grew by 3.5 per cent in November.