According to data released on Monday by the National Statistics Office (NSO), food inflation rose to 10.68% in September from 9.05% in August.
New Delhi |Consumer inflation has risen 65 bps (0.65%) to 7.34% in September. It was 6.69% in August. This increase has occurred because the prices of food items have seen a great rise recently. This is the highest level in the last 8 months, the data released by the central govt showed.
However, the Consumer Inflation has almost doubled compared to September of 2019. Last year, during same time period, it was at 3.99%. Meanwhile, the IIP figures fell by 8 percent in August.
In August 2020, there was some relief in consumer inflation food item prices coming down. It was down from 6.73% in July to 6.69%. Retail inflation was 3.99% in September 2019. However, the figure for September 2020 is more than the RBI estimate. RBI estimates ranged between 2 and 6%.
According to data released on Monday by the National Statistics Office (NSO), food inflation rose to 10.68% in September from 9.05% in August. On the other hand, there has been a setback on the industrial production (IIP) front in August.
According to government figures, industrial production fell 8% last month. The main reason behind this has been low production in manufacturing, mining and power generation sectors. It had dropped 1.4% in August 2019.
According to the Industrial Production Index data, manufacturing in the manufacturing sector fell 8.6% in August, while production in the mining and power generation segments suffered a shock of 9.8% and 1.8%, respectively. Industrial production was down by 1.4% in August 2019.
The Ministry of Statistics and Program Implementation said in a statement that it would not be correct to compare the IIP of the months after the Covid-19 to the IIP of the months before the epidemic. Gradual relaxation of restrictions has improved economic activity.
Inflation affects the economy
The Indian economy is being affected by persistent inflation. The country’s GDP fell by 23.9% in the April-June quarter. However, in recent times RBI had cut the repo rate by 115 basis points i.e. 1.15%. There has been no change in the RBI meeting this month.
Well it is now unlocked. Economic activities are expected to pick up pace. Its effect has also been shown on the GST collection. The GST collection is close to the first months of Kovid-19.
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