Food Prices Push Retail Inflation to 7% in Aug; July IIP Growth at 4-Month Low

New Delhi:  Retail inflation inched up to 7% in August from 6.71% in July mainly due to higher food prices, government data showed on Monday.

The consumer price index-based inflation is above the Reserve Bank's comfort level of 6% for the eighth month in a row.

According to the data, inflation in food basket was 7.62% in August, up from 6.69% in July and 3.11% in August 2021.

July Factory Output at 4-Month Low of 2.4%

India's industrial production (IIP) growth decelerated to a four-month low of 2.4% in July, mainly due to poor showing by manufacturing, power and mining sectors, according to official data released on Monday.

The data showed that the previous low in industrial output growth was recorded at 2.2% in March this year. IIP grew 6.7% in April, 19.6% in May and 12.7% in June.

Factory output, measured in terms of the Index of Industrial Production (IIP), had expanded 11.5% in July 2021.

The manufacturing sector expanded 3.2% in July 2022 compared with 10.5% recorded in the year-ago period, as per the data released by the Statistics and Programme Implementation Ministry.

The power sector showed a growth of 2.3% against 11.1% a year ago. The mining sector witnessed a contraction of 3.3% in July 2022 whereas there was a growth of 19.5% in the year-ago period.

During April-July this year, IIP rose 10% against 33.9% growth in the same period a year ago.

Capital goods output, which is a barometer of investments, rose 5.8% in July 2022 against 30.3% growth in the year-ago month.

The consumer durables segment grew 2.4% compared with 19.4% growth a year ago.

The primary goods segment, which accounts for nearly 34% of the index, expanded 2.5% in July compared with 12.4% growth in the year-ago period.

The ministry said the growth rates over the corresponding period of the previous year are to be interpreted considering the unusual circumstances on account of COVID-19 pandemic since March 2020.