New Delhi: Inflation and factory production figures have shocked the pace of recovery in the Indian economy amid the covid epidemic. The country’s industrial production (IIP) declined by 1.6 per cent in January. On the other hand, retail inflation has also suffered a setback to the economy. In February 2021, the retail inflation rate (CPI) rose to 5.03 per cent due to the rise in food prices.
It is known that during the review of the monetary policy of the Reserve Bank, takes into account the data of retail inflation. The RBI has set a target of keeping the retail inflation at 4 percent, in which it will remain two percent higher or lower.
According to government data, industrial production declined by 1.6 percent in January 2021. Manufacturing sector production declined by 2 per cent in January. Mining sector declined by 3.7 per cent. At the same time, the growth of Power Generation was recorded at 5.5 per cent. In January 2020, there was a 2.2 percent increase in IIP.
According to government figures, the retail inflation rose to 5.03 percent in February 2021. The main reason for rising inflation was the increase in the prices of food and drink. In January 2021, the retail inflation was 4.06 percent.
According to data released by the National Statistical Office (NSO), food inflation rose to 3.87 per cent in February 2021 as against 1.89 per cent in January. Fuel and light category inflation was recorded at 3.53 percent. In January it was 3.87 per cent.