CPI-based inflation eases to 5.09% in Feb; Jan IIP growth at 3.8%

The consumer price index (CPI)-based inflation eased to 5.09 per cent in February. The retail inflation rate had eased to 5.1 per cent in January from 5.69 per cent in December 2023.

The recent numbers mean the target inflation continues to stay within the Reserve Bank of India (RBI) 's tolerance level of 2-6 per cent for six consecutive months. However, it is important to note that this is the 53rd consecutive week when the headline number is more than the medium-target rate of 4 per cent.

The rural inflation came at 5.34 per cent in February, which is the same as in January and 5.93 per cent in December. The urban inflation for February also eased marginally to 4.78 as against January's 4.92 per cent.

Food and beverage recorded an inflation of 8.66 per cent vs 8.3 per cent in January 2024.

India's industrial production grew 3.8 per cent in January 2024, according to official data released on Tuesday.

Factory output measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 5.8 per cent in January 2023.

"India's Index of Industrial Production grows by 3.8 per cent in January 2024," an official statement said.

The data released by the National Statistical Office (NSO) showed that the manufacturing sector's output grew 3.2 per cent in January 2024, down from 4.5 per cent in the year-ago month.

In January this year, mining production rose 5.9 per cent, and power output increased 5.6 per cent.

The IIP grew 5.9 per cent during April 2023 to January 2024 compared to a 5.5 per cent expansion in the year-ago period.

(With PTI inputs)