As food inflation declined, retail inflation slowed to 5.07% in January compared to 3.17% in the corresponding period in 2017, data released by the Ministry of Statistics and Programme Implementation on Monday showed. The Consumer Price Index inflation, which measures the change in retail prices, had climbed to a 16-month high of 5.21% in December 2017.
The CPI inflation for rural areas was 4.93% in January, while that for urban areas was 5.21%. In January 2017, the rural inflation was 3.36%, while it was 2.9% in urban areas.
Retail food inflation was at 4.7%, compared to 4.96% in December 2017. The price of vegetables has risen by 26.97% compared to the corresponding period last year, while the price of eggs rose 8.7%, and that of milk and related products increased 4.21%.
The Reserve Bank of India in its monetary policy review had predicted retail inflation at 5.1% for January-March 2018.
The government also released data that said industrial output increased 7.1% in December 2017 compared to the output in December 2016. Sixteen of the 23 industry groups registered positive growth during the month when compared to the corresponding period in 2016. The industry group ‘Manufacture of other transport equipment’ registered the highest positive growth of 38.3%, followed by pharmaceutical, medicinal chemical and botanical products, which registered 33.6% growth.