Retail inflation rose to 4.48 per cent in October on rising food prices

After falling for four consecutive months, inflation rose

Industrial output down 3.1 per cent in September Mining and manufacturing

New Delhi: Retail inflation rose modestly to 4.48 per cent in October on account of higher food prices, according to data released by the government. Retail inflation based on the Consumer Price Index (CPI) was 4.35% in September, 2021. Inflation was 7.61 per cent in October, 2020.

According to data released by the National Statistical Office (NSO), food inflation stood at 0.85 per cent in October. Which was 0.68 per cent last month. The Reserve Bank of India (RBI) takes CPI-based retail inflation into account in its bi-monthly policy. The decision on whether to raise or lower interest rates is based on retail inflation.

According to RBI estimates, total inflation for the financial year 2021-22 will be 3.1 per cent. Inflation is projected to be 5.1 per cent in the second quarter, 4.5 per cent in the third quarter and 5.8 per cent in the fourth quarter of FY 2021-22. Inflation is projected at 5.2 per cent in the first quarter of FY2022-23.

September on the other hand. In 2021, industrial production fell to 3.1 percent. The decline in September was due to low base effect and weak performance of mining and manufacturing sectors. According to figures released by the National Statistical Office (NSO), the manufacturing sector has a weightage of 77.63 per cent in the Index of Industrial Production (IIP).

It is to be noted that industrial production is calculated on the basis of this index. Manufacturing output grew 2.7 percent in September. IIP has been 127.9 points in September, 2021. Which was 124.1 points in September, 2020. IIP was 122.9 points in September, 2019.