India’s industrial output to 1.7% in May and Retail inflation hits low

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Growth in the country’s industrial output slowed to 1.7 per cent in May this year, year-on-year. Industrial output had grown 8 per cent in May last year.

According to data released by the Central Statistics
Office, today, mining sector output contracted 0.9 per cent in May, while manufacturing sector output grew 1.2 per cent. Output in the capital goods segment, considered a key indicator of investment, shrank 3.9 per cent in May. But electricity generation expanded 8.7 per cent in May.

Retail inflation hit a “historically low” level of 1(points)54 per cent in June this year. Inflation had stood at 2.18 per cent in May this year, and at 5.77 per cent in June last year.

PTI reports that Chief Economic Adviser Arvind Subramanian has said that the inflation rate of 1.54 per cent for June is historically low and reflects the firm and ongoing consolidation of macro economic stability.

He said the last time that such inflation was seen– although according to a slightly different Consumer Price Index –was in 1999 and before that in 1978.

According to Central Statistics Office data, overall food inflation fell to minus 2.12 per cent in June. Retail inflation in vegetables stood at minus 16.53 percent. Similarly, prices of pulses and products declined, with retail inflation in this segment at minus 21.92 percent in June.

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