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Twin Shocks for Economy: Retail Inflation Spikes to 3-year High, Industrial Production Shrinks by -3.8%

A vendor sells vegetables at a retail market. (Reuters/file photo)

A vendor sells vegetables at a retail market. (Reuters/file photo)

According to data released by the statistics office on Thursday, consumer inflation spiked 5.54 percent in November on costlier food items, compared to 4.62 percent in the month of October.

New Delhi: In twin shocks for the economy that is battling a prolonged slowdown, the retail price based consumer inflation has spiked to a three-year high while the index of industrial production has contracted, official data showed.

According to data released by the statistics office on Thursday, consumer inflation spiked 5.54 percent in November on the back of costlier food items, compared to 4.62 percent in the month of October.

As per the data released by the National Statistical Office (NSO), the inflation in the food rose to 10.01 per cent. This compares with 7.89 per cent October and (-) 2.61 per cent in the year ago-month. The previous high of CPI was 6.07 in July 2016.

On the other hand, the Index of industrial production contracted by -3.8 percent in October, official data showed. The dip has mainly been due to poor performance by power, mining and manufacturing sectors. Factory output, as measured in terms of Index of Industrial Production (IIP), had expanded 8.4 per cent in October 2018.

A slowdown was witnessed in the manufacturing sector, which declined by 2.1 per cent in October as compared to 8.2 per cent growth a year ago. Power generation dipped sharply by 12.2 per cent in October, compared to 10.8 per cent growth in the year-ago period.

Mining output too fell 8 per cent in the month under review as against 7.3 per cent growth in the corresponding period last fiscal.

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