June inflation at 5%, factory output slips

Industrial production slipped to a seven-month low of 3.2 per cent in May due to sluggish performance of manufacturing and power sectors, while retail inflation continued to remain firm in June on costlier fuel, according to two sets of official data on Thursday.

The Monetary Policy Committee (MPC), headed by RBI Governor Urjit Patel, which would be meeting later this month to decide on the next bi-monthly interest rate review, would be factoring these key macro-econonic data.

The data was released after close of stock markets, which witnessed the benchmark BSE Sensex ending at a lifetime high of 36,548.41.

The rupee too surged by 20 paise to end at a one-week high of 68.57 against the US dollar buoyed by a steep fall in crude prices and a strong rally in equity markets.

The MPC will be meeting for three-days from July 30 and announce its decision on the third bi-monthly policy of the current fiscal on August 1.