January IIP at 2%; February CPI at 6.58% Vs 7.59% in previous month

India's industrial output grew by 2 per cent in January amid subdued performance of manufacturing sector, government data showed on Thursday. The Index of Industrial Production (IIP) had grown by 1.6 per cent in January 2019.

According to data from the National Statistical Office (NSO), the manufacturing sector output grew by 1.5 per cent as compared with a rise of 1.3 per cent in the corresponding month a year ago. Electricity generation rose 3.1 per cent, against 0.9 per cent growth in January 2019.

The mining sector output posted a growth of 4.4 per cent in January 2020, compared with a rise of 3.8 per cent a year ago. The IIP growth during the April 2019-January 2020 period decelerated to 0.5 per cent, from 4.4 per cent expansion in the corresponding period of 2018-19.

Retail inflation slowed to 6.58 per cent in February over the previous month mainly due to easing food prices. The retail inflation based on Consumer Price Index (CPI) was 7.59 per cent in January and 2.57 per cent in February 2019.

The inflation in the food basket was 10.81 per cent in February 2020, lower from 13.63 per cent in the previous month, as per the CPI data released by the National Statistical Office (NSO). The Reserve Bank of India mainly factors in the retail inflation while deciding its bi-monthly monetary policy. The government has mandated the central bank to keep inflation at around 4 per cent.