CPI inflation relieves to 4.59% in December while IIP declines 1.9% in November
According to data released by the Ministry of Statistics and Program Implementation on Tuesday Consumer Price Index (CPI), based inflation abated to 4.59 per cent in December 2020 as against 6.93 per cent in November. Food inflation declined to 3.41 per cent in December, compared to 9.5 per cent in the previous month. The increase in prices in October 2020 had been the sharpest since May 2014 when the inflation peaked to 7.61 per cent.
Meanwhile, the Index of Industrial Production (IIP) declined by 1.9 per cent in November compared to 4.2 per cent growth in October, and growth of 2.1 per cent in November 2019 according to data from the Ministry of Statistics and Programme Implementation while the manufacturing sector output shrank by 1.7 per cent in November, while power generation rose 3.5 per cent. Mining output saw a decline of 7.3 per cent as against a growth of 1.9 per cent in November 2019.
Inflation in India, as measured by Consumer Price Index (CPI), has consistently been above the central bank’s limit of 6 per cent for the past eight months until November and rise in prices in October had been the sharpest since May 2014 when the inflation soared to 7.61 per cent. The decrease in inflation in December was led by lower prices of some food items.