Inflation inches up, industrial growth dips

Rising for the eighth month in a row, retail inflation climbed to 3.2% in June though remaining well within the RBI’s comfort zone, leaving scope for a rate cut by the central bank to boost industrial production which has yet to gain traction.

Factory output growth based on Index of Industrial Production slipped to 3.1% in May as against 4.3% in the previous month, mainly on account of subdued performance of mining and manufacturing sectors.

Retail inflation based on Consumer Price Index inched up to 3.2% in June, from 3.1% in May, primarily due to firming prices in the food basket.

However, the data revealed that inflation in vegetables and fruits segments eased over the previous month. 

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