Retail inflation at 7 month high of 3.05 percent; Meat and Veggies costlier, fruits cheaper

Last Updated: Wed, Jun 12, 2019 19:15 hrs
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The Central Statistics Office on Wednesday released the retail inflation or CPI (Consumer Price Index) numbers. According to the provisional numbers, inflation in the month of May was up to a seven month high of 3.05 percent. For the month of April, inflation was recorded at 2.99 percent. For May 2018, the CSO had announced an inflation of 4.87 percent.

CPI numbers for rural markets (1.86 percent) is lower than the CPI for urban markets (4.51 percent).

Also a major observation is that Consumer Food Price Index for the month of May (minus 0.22 percent) and April (minus 0.80 percent) has been negative for rural markets.

Major products such as Meat & Fish (up by 8.12 percent), Vegetables (5.46 percent), Housing (4.82 percent), Health (8.01 percent), Education (6.69 percent) have recorded the most gain. Only fruits are reported to have shown a negative growth (minus 5.17 percent).

The CSO data also showed annual inflation rates across states and union territories. Karnataka (5.40 percent), Kerala (5.37 percent), Jammu & Kashmir (4.81 percent), Uttarakhand (4.56 percent) showed the highest annual inflation numbers. Bihar (0.22 percent), Himachal Pradesh (0.58 percent), Andhra Pradesh (0.71 percent), Telangana (1.50 percent) were among the lowest.

The press release for provisional May inflation numbers are available here. (Opens a PDF File)

The CSO also released quick estimates or provisional numbers for the index of industrial production for the month of April 2019. The numbers reflected IIP growing to a six month high. In a press release, the ministry said, "cumulative growth for the period April-March 2018-19 over the corresponding period of the previous year stands at 3.6 percent."

Industrial production of 3.4 percent in April'19 remained lower than 4.5 percent that the ministry claimed was achieved during corresponding period of last fiscal. Industrial growth in October 2018 recorded a high of 8.4 per cent.

The ministry in its release observed that fourteen out of the twenty three industry groups within the manufacturing sector showed positive growth during the month of April 2019 as compared to the corresponding month of the previous year

The release read, "The industry group 'Manufacture of wearing apparel' has shown the highest positive growth of 33.6 percent followed by 22.6 percent in 'Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials' and 16.3 percent in 'Printing and reproduction of recorded media'."

It further added, "On the other hand, the industry group 'Manufacture of paper and paper products' has shown the highest negative growth of minus 12.3 percent followed by minus 9.6 percent in 'Manufacture of fabricated metal products, except machinery and equipment' and minus 3.5 percent in 'Manufacture of other transport equipment'."

The press release for the IIP numbers is available here. (Opens a PDF File)

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