In December, the country’s industrial output declined by 5 percent. Retail inflation rose to 5.5 percent in January. Both of these factors have created a new strain.
New Delhi: Finance Minister Nirmala Sitharaman on Monday said that there are signs of improvement in the economy and inflation and inflation are the two factors causing new pressure.
Industrial production grew by 6.5 percent in November. It was expected to be back on track to recover. Falling backward in December is worrying.
The Reserve Bank of India has not made any change in interest rates during the last financial year. However, inflation is expected to remain low as retail inflation stands at 7.7 percent.
Primary product prices increased by 18 percent. It was 8.6 percent in November.
Industrial production declined for three months before November last year. This was a slowdown in December, with a slight increase in November.
The main sector grew 1.3%.
Vegetable prices have risen as a result of the increase in the Vegetable Price Index (CPI).
The Reserve Bank increased the repo rate from one year to three years last year to increase liquidity. This was done so that the banks had enough cash flow to pay. However, inflation responsible for rising retail inflation has increased. In December, retail inflation rose to 7.7 percent from 7.7 percent in the previous month. In January last year, it was 1.77 percent.
Food inflation last month was 0.56%. It was slightly lower at 14.19 percent in December.