February 21, 2018

Retail inflation decelerates to 2.99% as food prices plunge

15 May 2017, 12:59 | Ruben Fields



The retail inflation based on the Consumer Price Index (CPI), as well as gross domestic product (GDP) data is also calculated on the base year of 2011-12.

Economists say the lower CPI and WPI numbers aren't likely to provide room for any policy rate cut anytime soon due to upside risks to core inflation, which excludes food and fuel.

Overall food inflation, or the rate of price increase, for April was at 0.61 per cent as against 1.93 per cent previously.

India's improving inflation performance has pushed real interest rates - the amount by which they exceed inflation -strongly into positive territory.

The government has revised the base year of Wholesale Price Index, WPI and Index of Industrial Production, IIP to 2011-2012 from 2004-05.

THE government on Friday released Index of Industrial Production (IIP) and Wholesale Price Index (WPI) series with base year of 2011-2012, replacing 2004-05 used till now.

As per the new series data, industrial output growth slowed to 2.7 percent in March as against 5.5 percent a year ago.

However, intermediate goods production grew 3 per cent in 2016-17 while infrastructure and construction goods rose by 3.8 per cent.

Markets Right Now: Stocks move lower on Wall Street
USA futures pointed to a slightly lower open on Wall Street as investors awaited the release of retail sales and inflation data. The two-year yield dropped to 1.28 percent from 1.34 percent, and the 30-year yield fell to 2.99 percent from 3.03 percent.

As per the last data, IIP for the month of February fell by 1.2% on year-on-year basis, as against the estimate of 1.3%. The mining sector, however, expanded by 9.7 per cent in March 2017 compared to a growth of 4.7 per cent previous year.

For 2017-18, inflation is projected to average 4.5% in the first half of the year and 5% in the second half.

In Asia, China's annual consumer inflation edged up to 1.2 per cent in April from March's 0.9 per cent, while quickening in Indonesia to a 13-month high of 4.17 per cent.

"From now on the IIP data would have a more realistic coverage and be reflective of the market realities which would be useful for tracking economic activity".

The working group for the development of the methodology of compilation of IIP had recommended that the new item basket for IIP include 55 mining products and 809 manufacturing products, with electricity as a single product.

In the item basket, 149 new products like steroids and hormonal preparations, cement clinkers, medical or surgical accessories, pre-fabricated concrete blocks and refined palm oil have been added.

Economists said the new series reflects the changes in the economy over the years. Inclusion of electricity generation from renewable sources have also been included in the new IIP series.

Other News

Trending Now

Amazon's Touchscreen Echo Show Announced; Alexa updated with Voice Calls
There is also no way to disable the Alexa calling service once the service has been configured with a user's phone number. For example, when playing music, you can have the lyrics scroll on screen - or you could watch a music video instead.

Repeal and Repent! Jerry Brown Demands Republican 'Penance' on Obamacare
Brown proposes releasing the money once administrators show they've made progress on spending recommendations and other reforms. The state auditor was particularly critical of UC President Janet Napolitano, who has disputed auditors' findings.

Lasagne on the menu at White Hart Lane
So it's difficult, difficult, but we know what we are doing. "Third, second and hopefully next season we'll be No. 1". A season to savour for Tottenham saw them go unbeaten at home in the league for the first time in over 50 years.

Browns' top pick Garrett gets sacked by Hall of Famer
Timing and quick-twitch ability are crucial for pass rushers, as they shoot for a fast takeoff while avoiding an offside penalty. I want us to channel some of those. "What you think of me is no skin off my teeth". "Holy smokes.

17 mummies discovered in central Egypt
The tourism sector, a crucial source of hard currency, has struggled to regain ground amid a growing number of attacks in recent years.

Opioid Epidemic Drives Surge in Hepatitis, CDC Says
According to the CDC, half of the individuals who are living with the virus are not even aware that they are infected. The virus can be spread by sharing drugs and needles, the stick of a contaminated needle, and through sex.

Bottas joins F1 Finnish stars with Russian GP win
Hamilton, whose bid for a fourth title last season was wrecked by reliability issues, finished 36 seconds behind the victor . Raikkonen's radio transmissions have become a thing of F1 folklore and the Finn provided much hilarity again on Sunday.

Former French Prime Minister Valls plans to back Macron in June elections
But he is inexperienced, has no political party and must fashion a working parliamentary majority after legislative elections next month.

Spurs face quick turnaround before conference finals
Nowitzki accomplished the feat twice against Aldridge's team, the Portland Trail Blazers (2003, 2011). If you check out the responses to that tweet, you'll understand just how unbelievable it is.

McDonnell: Labour Will "Come Out Fighting" From Historic Council Election Loss
It was a bad day for the Labour party in Ashfield as just one councillor was elected to Nottinghamshire County Council . At Conservatives taking 50% of UKIP's votes, Labour would be set to lose around 36 seats due to this effect alone.