Retail inflation rises to 5.03% in February

Retail inflation (CPI) inched up to 5.03 per cent in February. According to the ministry of statistics and programme implementation data released yesterday, inflation increased mainly due to rise in food and fuel prices.

 

Food inflation rose to 3.87 percent in February, compared to 1.89 percent in the previous month. Inflation in 'fuel and light' category fell marginally to 3.53 per cent in February compared to 3.87 per cent in January but remained high compared to the corresponding period of the previous year.

 

The consumer price index (CPI) based retail inflation was at 4.06 per cent in



January which was lowest since October 2019.

 

On the other hand, the country’s factory output (IIP) for the month of January contracted by 1.6 percent. IIP contracted after registering a one per cent growth in December 2020.

 

Electricity sector output grew 5.5 per cent in January, while manufacturing contracted by 2.0 per cent and mining output contracted by 3.7 per cent.

 

Hit by Covid-19 spread and lockdowns, IIP contracted for five months in row from April to August in last fiscal before making a comeback to positive territory.