Consumer inflation in September increased to 7.34% from 6.69 per cent in the previous month on account of rising food prices. This marks the highest level recorded in past eight months, and well above the RBI's target range of 2-6 per cent. Food inflation in September rose to 10.68% compared to 9.05% in August.
Another key barometer of the economy, Industrial production, declined by 8 per cent in August, mainly due to lower output of manufacturing, mining and power generation sectors. The IIP had contracted by 1.4 per cent in August 2019.
According to the data, manufacturing sector production registered a decline of 8.6 per cent, while the output of mining and power segments fell 9.8 per cent and 1.8 per cent.
Persistent high prices has hurt Indian economy, which contracted a record 23.9% in April-June despite the Reserve Bank of India cutting its key repo rate by a cumulative 115 basis points since the pandemic started. The MPC in its last meeting decided to keep its key interest unchanged and has maintained an accommodative stance.
Although the government has eased some lockdown restrictions to help the economy, supply chain disruptions have shown little sign of abating as the virus continues to spread rapidly in India.
Another key barometer of the economy, Industrial production, declined by 8 per cent in August, mainly due to lower output of manufacturing, mining and power generation sectors. The IIP had contracted by 1.4 per cent in August 2019.
According to the data, manufacturing sector production registered a decline of 8.6 per cent, while the output of mining and power segments fell 9.8 per cent and 1.8 per cent.
Persistent high prices has hurt Indian economy, which contracted a record 23.9% in April-June despite the Reserve Bank of India cutting its key repo rate by a cumulative 115 basis points since the pandemic started. The MPC in its last meeting decided to keep its key interest unchanged and has maintained an accommodative stance.
Although the government has eased some lockdown restrictions to help the economy, supply chain disruptions have shown little sign of abating as the virus continues to spread rapidly in India.
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21 Comments on this Story
 | King1 hour ago Did you know that your mind has a 'mind' of its own? Yes! Without even realizing, our mind is often governed by another entity which is called the sub-conscious mind. https://amzn.to/3nQfC9F |
| KD 1 hour ago India is facing classic stagflation kind of a scenario. Government should very deeply think and get Expert Opinion from Niti Aayog before bringing policies like vehicle scrappage policy. |
| Ron 1 hour ago yashodhan....this is an information. Seeing green shots or recovery means demad is rising and is inflation rising due to less supply....get some knowledge n sense.... simple telling senseless anti national.... |