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12
November 2018
 |
General Indices and CFPIs (The Total Investment & Insurance
Solutions)
Retail inflation for the month of October
eased to 3.31 per cent, while industrial production for the month of September
is at 4.5 per cent , two sets of government data released separately on Monday
revealed. The urban inflation for the month of October also underwent a change
arriving at 3.97% vs 4.31% in the previous month. Clothing and footwear
inflation for the month of October is at 3.55% vs 4.64% in September,
indicating a reduction in prices. The performance of three key sectors;
electricity, mining and manufacturing is considered to arrive at the larger IIP
numbers. Electricity production in September stood at 8.2% versus 7.6 in
August. The rate of industrial production growth slowed down to a three-month
low of 4.3 per cent in August. Manufacturing sector output grew 4.6 per cent in
August compared with near 7 per cent in July, but 3.8 per cent in August a year
ago.
All India Inflation rates (on point to point
basis i.e. current month over same month of last year, i.e., October 2018 over
October 2017), based on General Indices and CFPIs are given as follows:
Retail inflation had fallen to a tenmonth low
of 3.69 per cent before rising marginally to 3.77 per cent in September on the
back of slightly higher food and fuel prices. The recent plunge in global crude
oil prices augurs well for inflation which, at present, is within the RBI's
comfort level of 4 per cent indicating that it could keep the interest rates
steady in the next bimonthly review. The RBI maintained a status quo in its
October policy review after raising interest rates by 25 bps both in June and
August. The Reserve Bank of India had revised its inflation projection
downwards to 3.9-4.5 per cent from 4.8 per cent for the second half of the
current fiscal mainly on the back of unusually benign food prices which, it
said, imparts a downward bias to the inflation trajectory in second half.
The central bank, however, had revised its
stance to 'calibrated tightening' from 'neutral' considering 11/12/2018 Retail
inflation eases to 3.31% in October; IIP numbers at 4.5% in September the
upside risks that pose a threat to inflation outlook. The RBI had projected the
retail inflation at 4.8 per cent for the first quarter of next fiscal. The
upside risks flagged by the central bank in its review include uncertainty in
global crude oil prices, a volatile financial market and higher state-mandated
prices for crops sown in summer. The expectations of rate hike by US Federal
Reserve amid a strengthening dollar and a further weakening of the rupee could
add to India's inflation worries. The
Total Investment & Insurance Solutions
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