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Retail inflation at 25-mth low, IIP expands after four months

New Delhi: Retail inflation easing to a 25-month low of 8.1 percent in February and a slight improvement in industrial growth have raised hopes for a rate cut by the Reserve Bank next month to

India TV News Desk Updated on: March 12, 2014 22:15 IST
According to the data, factory output started to decline in October with the IIP contracting 1.6 percent and continued till December.

Power generation posted a growth of 6.5 percent in January, compared with 6.4 percent in the same month of 2013. Expansion in power generation was 5.7 percent in April-January from 4.7 percent a year ago.

The mining sector, with a weight of about 14 percent in IIP, grew 0.7 percent in January as against a dip of 1.8 percent in the same month in 2013. During April-January, mining output shrank 1.5 percent as against a dip of 1.8 percent a year earlier.

The manufacturing sector, which constitutes over 75 percent of the index, declined 0.7 percent in January as against growth of 2.7 percent in the year-ago period. During April-January, the sector's output contracted 0.4 percent compared with 0.8 percent growth in the period last fiscal.

Overall, 11 of the 22 industry groups in manufacturing showed positive growth in January.

Consumer goods output declined 0.6 percent compared with growth of 2.5 percent a year earlier. During April-January, consumer goods output contracted 2.7 percent, compared with 2.7 percent growth in the corresponding period of 2012-13.

The consumer durables segment contracted 8.3 percent in January as against a decline of 0.7 percent previously. For the April-January period, the segment declined 12.5 percent compared with an expansion of 3.3 percent earlier.

In consumer non-durables, growth was 4.4 percent compared with 4.6 percent in January last year and for the April-January period, it was 5.6 percent versus 2.1 percent during the first 10 months of 2012-13.

Capital goods production, a barometer of demand, declined 4.2 percent compared with a contraction of 2.5 percent in the same month last year. The segment shrank 0.8 percent in April-January as against a sharp contraction of 9.4 percent in the comparable period.

The intermediate goods segment expanded at 3.4 percent in January compared with a growth of 3.5 percent a year earlier. During April-January, the segment grew 3 percent compared with 1.8 percent growth previously.

The basic goods segment grew 0.9 percent in January, lower than 3.7 percent in the same month last year, while for April-January, growth was 1.3 percent versus 2.8 percent in the year ago period.
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