Retail inflation has come down to 4.59 percent in December. According to the data released by the government on Tuesday, this is mainly due to the fall in food prices. The retail inflation based on the Consumer Price Index (CPI) stood at 6.93 per cent in November. In December 2020, food inflation fell to 3.41 percent. In comparison, it was 9.5 per cent last month.
This data has been released by the Ministry of Statistics and Program Implementation. The Reserve Bank of India (RBI) looks at retail inflation while deciding its monetary policy.
Manufacturing sector production down
On the other hand, there has been a setback in the industrial production front in the month of November. According to official data released on Tuesday, India’s industrial production fell by 1.9 per cent in November 2020. According to the Index of Industrial Production (IIP), manufacturing in the manufacturing sector declined by 1.7 percent in November 2020. Mining production has also fallen by 7.3 percent. While the production of energy has increased 3.5 percent.
IIP has increased by 2.1 percent in November 2019. Industrial production has suffered a setback since March last year when IIP fell by 18.7 percent in the month.