India Inc expects further improvement as IIP grows at 7.5%,

Andrew Cummings
March 12, 2018

In February 2017, however, it was 3.65 per cent. Inflation in vegetables was 17.57 per cent in February against 26.97 per cent in January.

As per the use-based classification, the growth rates in January 2018 over January 2017 are 5.8 per cent in primary goods, 4.9 per cent in intermediate goods, and 6.8 per cent in Infrastructure/ Construction Goods.

On an annual basis, the main CPI probably rose 2.2 percent from a year earlier, up from 2.1 percent in January, while the core index's gain was unchanged at 1.8 percent, according to median estimates. The RBI in its monetary policy review last month had estimated retail inflation at 5.1% for January-March 2018.

In a sustained improvement in economic conditions, retail inflation in February eased as food prices softened, while industrial production soared in January.

As industrial output expanded at 7.5 per cent in January, India Inc today said the improvement augurs well for the return of broad based recovery in industrial performance which may be on the up-slope, going forward.

Prices of pan, tobacco and intoxicants rose by 7.34%.

"Given the outsized jump in apparel prices in January, we would not be surprised to see a negative print in February" for apparel prices, he said in a note last week. Retail prices of pulses, sugar and spices contracted in February.

The CPI inflation for rural areas was 4.37% in February while for urban areas it was 4.52%. In terms of industries, 16 out of 23 industry groups in the manufacturing sector showed positive growth during January, 2018.

Industrial production grew at 4.1% in April-January, compared to 5% in the same period of the previous financial year.

Capital goods, a barometer of investments, showed a sharp increase in output by 14.6 per cent in January 2018 against a decline of 0.6 per cent year ago.

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