Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: 4.8
Article rating: 5.0
Article rating: 3.0
Article rating: No rating
Article rating: 5.0
Article rating: No rating
Article rating: No rating
Article rating: 4.5
Article rating: No rating
Article rating: No rating
Article rating: 4.2
Article rating: 5.0
Article rating: 4.0
Article rating: No rating
Article rating: No rating


Inflation eases in Feb, factory output surges to 7.5% in January

Author: IANS/Tuesday, March 13, 2018/Categories: Economy

Inflation eases in Feb, factory output surges to 7.5% in January

New Delhi - As manufacturing picked up pace, India's factory production growth in January at 7.5% doubled over the 3.5 recorded in the same month last year, even as retail inflation eased in February, official data showed.

Industry welcomed the "pick-up in growth trajectory" witnessed in the beginning of the calendar year.

The Index of Industrial Production (IIP), however, rose marginally over the 7.1% registered in December 2017, a Central Statistics Office (CSO) release said.

The cumulative IIP growth for the April-January period of the current fiscal, at 4.1%, was lower than the 5% posted in same period of 2016-17. 

In line with the recent trend of recovery in manufacturing, the sector, which constitutes 77.63% of the index, grew by 8.7% during January, as compared to 2.5% in the same month last year. 

Retail inflation for February eased down to 4.4%, compared to 5.07% in the previous month. The consumer price-indexed (CPI) inflation was 3.65% in February 2017.

Inflation softened last month mainly on account of cheaper food prices and lower cost for fuel. Inflation rate in the consumer food segment was lower at 3.26%, as compared to 4.7% in January.

The January IIP was also boosted by a higher offtake of consumer and capital goods.

Capital goods output in the month under consideration increased sharply by 14.6%, as against a fall of 0.6% in January last year.

Consumer durables recorded a growth rate of 8% as against a decline of 2% in the same month a year ago.

The mining sector, however, registered negligible growth of 0.1%, as compared to 8.6% rise in January last year.

During January, 16 out of 23 industry groups in the manufacturing sector showed positive growth. 

Commenting on the IIP numbers, industry chamber Assocham described these as signs of "an underlying pick-up in the growth trajectory".

"It would be safe to assume that a lot of advantage has accrued because of the low base effect of the previous year when the growth had plunged following the demonetisation, said Assocham Secretary General D.S. Rawat in a statement.

On retail inflation, "the undercurrent remains biased on the upside, making RBI disinclined towards any rate cut", he said.

Deloitte India Lead Economist Anis Chakravarty said: "Overall, the latest IIP data points towards signs of economic recovery as the negative effect of the disruptive shocks of last year appear to be on the wane. However, the momentum of the recovery needs to be sustained through effective implementation of the structural and infra related reforms."

Print Rate this article:
No rating

Number of views (207)/Comments (0)

rajyashree guha


Other posts by IANS
Contact author

Leave a comment

Add comment



Ask the Finapolis.

I'm not a robot
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest



The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free