Business, Economy & Banking Current Affairs - 2019
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The Central Statistical Office (CSO) has released the data of Inflation for the month of February 2019. The data shows that:
- Retail inflation was at a four-month high of 2.57 per cent in February 2019 due to costlier food articles. The retail inflation was highest since October 2018 when it stood at 3.38 per cent.
- Consumer Price Index-based inflation for January 2019 was revised down to a 19-month low of 1.97 per cent from an earlier estimate of 2.05 per cent.
- Food inflation at (-) 0.66 per cent in February 2019 was lower against 3.26 per cent in the same month last year.
- The consumer food price index increased by 0.15 per cent in February against January 2019.
- The prices of Protein-rich items such as meat & fish and eggs witnessed a quick rise in prices at 5.92 per cent and 0.86 per cent respectively in February.
- The prices of cereal and products went up at 1.32 per cent.
- Fruits and Vegetable prices continued their declining trend.
- In the fuel and light category, the rate of price rise slowed to 1.24 per cent from 2.20 per cent in January.
With the headline inflation reading at 2.57 per cent and industrial production growth on the downside at 1.7 per cent, economists see a case and space for one more rate cut of 25 bps by RBI in April to support growth.
The Central Statistics Office (CSO) has released the data for the Index of Industrial Production (IIP) for the month of January. The IIP data shows that:
- Industrial output growth stood at 1.7 per cent in January against the 2.6% growth recorded in December 2018.
- The CSO has revised the industrial production growth for December 2018 has been revised upwards from 2.4% to 2.6%.
- The growth of output of manufacturing sector moderated to 1.3% and the electricity generation rose a mere 0.8% in January 2019.
- The mining output rebounded 3.9% in January 2019, snapping 1% decline in December 2018.
- Capital goods output declined 3.2% in January 2019 and the output of intermediate goods also fell by 3.0% in January 2019.
- The output of primary goods increased by 1.4%, while that of infrastructure/ construction goods moved up 7.9% in January 2019 when compared to January 2018.
- The output of consumer durables moved up 1.8%, while that of consumer non-durable durables also rose 3.8% in January 2019 when compared to January 2018.
- Eleven out of the twenty-three industry groups in the manufacturing sector have shown positive growth during the month of January 2019 as compared to January 2018.
- The cumulative industrial production increased by 4% in April-January FY2019 compared with 4.1% growth in April-January FY2018.
- The manufacturing sector growth has improved to 4.4% in April-January FY2019 from 4.2% growth in the corresponding period last year.
- The electricity generation output growth also improved to 5.8%, while mining output growth accelerated to 5.3% in April-January FY2019.
Index of Industrial Production
Index of Industrial Production (IIP) is a composite indicator that measures the changes in the volume of production of a basket of industrial products during a given period with respect to the volume of production in a chosen base period. The base year for the IIP is 2011-12.