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IIP growth at 17-month high brings cheer; inflation a dampener


A robust performance by the manufacturing sector took the industrial production growth to 17-month high of 8.4 per cent in November, but retail inflation at 17-month high of 5.2 per cent in December dampened the euphoria.The continuous rise in consumer inflation may prompt the Reserve Bank, which is aiming to keep it within 4 per cent, to hold the interest rate at its next month’s policy review meet, which will be held within days of the presentation of the Union Budget on February 1.The manufacturing sector, which constitutes 77.63 per cent of the Index of Industrial Production (IIP), recorded an impressive growth of 10.2 per cent in November as compared to 4 per cent a year ago.
Source: Latest News

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