India's retail inflation based on Consumer Price Index (CPI) spiked to 7.59 per cent for the month of January from 7.35 per cent in December, due to costlier food products like vegetables, pulses and protein-rich items, data released by National Statistical Office (NSO) showed on Wednesday. The inflation rate was at 2.05 per cent in January 2019. Inflation in January is well above the Reserve Bank of India's (RBI) medium-term target of 4 per cent for the fourth straight month.
Industrial production contracted by 0.3 per cent in December as against 2.5 per cent growth in same month a year ago, weighed by a decline in the manufacturing sector
Electricity generation also dipped 0.1 per cent as against a growth of 4.5 per cent in December 2018.
Mining sector output grew by 5.4 per cent, compared to a contraction of 1 per cent earlier.
The IIP growth during April-December period of the current fiscal decelerated to 0.5 per cent from 4.7 per cent expansion in the same period of 2018-19.
According to the data released by NSO, inflation in the food basket eased to 13.63 per cent from 14.12 per cent in December 2019. Food inflation rate was at (-) 2.17 per cent in January 2019.
During the month, inflation in vegetables improved to 50.19 per cent, as against 60.50 per cent in December 2019.
Likewise, the prices of cereals and products grew at a pace of 5.25 per cent.
Prices of pulses and related products rose by 16.71 per cent during the month.
Onion prices - an important food item in Indian households have been on the rise contributing to a surge in food inflation that has picked up steadily since March 2019.
In its February policy review, the Reserve Bank of India (RBI) maintained status quo, and kept the repo rate unchanged at 5.15 per cent , as inflation outlook remained "highly uncertain"
The central bank has been mandated by the government to contain inflation in the range of 4 per cent, with a margin of 2 per cent on either side.