July retail inflation rises to 7.9 percent: June IIP grows by 3.4 percent

New Delhi, Aug 12 :

India’s retail inflation rose to 7.9 percent in July due to higher food prices, while industrial output in June grew at 3.4 percent, government data showed Tuesday.

The cumulative growth in factory output, measured in terms of the Index of Industrial Production (IIP) for the period April-June 2014-15 over the corresponding period of the previous year stood at 3.9 percent.

Industrial production grew 5 percent in May, while the drop in June is mainly due to the lower output of consumer goods.

Factory output figures remained in the positive mainly due to improved performance in the manufacturing, mining and power sectors and capital goods sectors.

Manufacturing grew 1.8 percent in June, compared to the decline in output by 1.7 percent a year ago.

For April-June, manufacturing grew at 3.1 percent, as against the contraction of 1.1 percent in the same quarter of the last fiscal.

As per IIP data, consumer goods output of contracted by 10 percent in June, as against the contraction of 1.5 percent a year ago. For the April-June quarter, consumer goods show a contraction of 3.6 percent compared to a fall of 2.1 percent in the same period of 2013-14.

The consumer durables segment fell by 23.4 percent in June, as against a decline of 10.1 percent a year ago. For the April-June period, it declined by 9.6 percent as against a fall of 12.7 percent in the first quarter of the previous fiscal.

Consumer non-durables grew at a rate of only 0.1 percent in June compared to 6.2 percent in same month last year.

Consumer price (CPI) inflation accelerated to a two-month high of 7.96 percent in July, pushed up by rising prices of vegetables, fruit and milk.

Food price inflation under a new series published by the government jumped in July to 9.36 percent from 7.97 percent in the previous month.

(IANS)