Retail inflation dips, but prices of fruits, veggies remain high

Tribune News Service

New Delhi, March 12

The retail inflation rate remained below the 6 per cent mark for the seventh successive week with the February consumer price index (CPI)-based inflation rate recording a rise of 5.09 per cent in February. However, the inflation rate remained over the median comfort rate of 4 per cent for nearly a year. This marks a marginal decrease from 5.10 per cent recorded in January.

Industrial growth down

The industrial production growth slowed to 3.8% in January, mainly due to sluggish performance by the manufacturing, mining and power sectors. It stood at 4.2% in December last and 2.4% in November. The manufacturing sector’s output decelerated to 3.2%, as did power generation (5.6%) and mining output (5.9%).

Among north Indian states, the inflation rate was the highest in Haryana at 7.5 per cent and lowest in Delhi at 2.47 per cent. It was 4.75 per cent in Punjab, 5.32 per cent in Himachal and 5.22 per cent in UT of JK.

Inflation in rural areas at 5.34 per cent continued to remain higher than in urban areas where it rose by 4.78 per cent. However, food inflation in rural areas was lower at 8.21 per cent compared to 9.19 per cent in urban areas due to high prices of fruits and vegetables, leading to a combined inflation rate of 8.66 per cent. Last year, in the same month combined food inflation was 6.44 per cent.

Clothing and footwear were more expensive in rural areas, as were household goods and service, health, transport and communication, recreation and amusement and education. Compared to the same month last year, the inflation rate in February was higher for almost the entire food and beverages’ group.

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