2024-07-13 20:28:47
New Delhi: The retail inflation rate has increased in June due to the cost of food items. It has increased to 5.08 percent. At the same time, due to the good performance of the mining and power sectors, the country’s industrial production has increased by 5.9 percent in May this year. This information was given in the official data released on Friday. According to the data of the National Statistical Office (NSO), the retail inflation rate based on the Consumer Price Index (CPI) was 4.8 percent in May 2024 and 4.87 percent in June 2023. These figures show that the inflation rate of food items increased to 9.36 percent in the month of June, which was at 8.69 percent in May.
Difficulties will increase for RBI
The government has entrusted the Reserve Bank of India (RBI) with the responsibility of ensuring that the retail inflation rate remains at four percent with a variation of two percent. RBI mainly takes into account the retail inflation rate while deciding on the policy rates.
The Reserve Bank has projected the retail inflation rate to be 4.5 percent for the financial year 2024-25. It has been estimated to be 4.9 percent in the first quarter, 3.8 percent in the second quarter, 4.6 percent in the third quarter and 4.5 percent in the fourth quarter.
rise in industrial production
At the same time, the country’s industrial production grew by 5.9 percent in May. This happened due to the good performance of the mining and power sectors. Industrial production based on the Index of Industrial Production (IIP) grew by 5.7 percent in May 2023.
According to NSO data, mining production grew by 6.6 per cent and power generation by 13.7 per cent in May 2024. The growth rate of manufacturing sector production declined to 4.6 per cent in May this year from 6.3 per cent in the same month a year ago. During April-May in the current financial year, growth in industrial production was 5.4 per cent as against 5.1 per cent in the same period a year ago.