Retail inflation marginally rises to 2.57% in February, January factory output dips to 1.7%
While retail inflation in February was marginally higher last month's figure, it is significantly lower than the 5.07 per cent recorded in the same month last year.
Retail inflation in February marginally increased to 2.57 per cent, showed government data on Tuesday. Several economists had predicted the consumer price index at 2.43 per cent, according to a Reuters poll.
The retail inflation for the month of January, which stood at 2.05 per cent, was revised downwards to 1.97 per cent, as per the official statement from the Central Statistics Office.
While retail inflation in February was marginally higher last month's figure, it is significantly lower than the 5.07 per cent recorded in the same month last year.
The Consumer Price Index (CPI)-based inflation is a way to measure changes in price of retail goods, available for customers.
Retail inflation for the month of February is well within the Reserve Bank of India's (RBI) medium-short term target of 4 per cent.
Meanwhile, factory output came at 1.7 per cent in January, registering a slight decline against 2.4 per cent in December.
The Index of Industrial Production (IIP) is the closest approximation used to measure the rate of business activity in terms of the economy.
Factory output has been inconsistent over the last few months, especially in the manufacturing sector that accounts for more than 70 per cent of industrial activity in India.
While there was a slight improvement in the December factory output numbers, it has again dipped to the level witnessed in November.
Read | RBI board warned of short-term negative impact after demonetisation: RTI