"Pass through of fuel prices largely led to surge in inflation hile core inflation added to pricing pressures...Separately, food prices also showed some increase on account of food price hike, especially fruits and vegetables. However, they can be expected to stabilise on monsoon cues while core inflation can be expected to see further expansion if input costs remain on elevated levels," said Anis Chakravarty, Lead Economist and Partner, Deloitte India.
|Indices||May 2018 (Prov.)|
|Indices||April 2018 (Final)|
|Indices||May 2017 (Final)|
In a separate data released by the government, industrial output rose to 4.9 per cent in April as compared to a five-month low of 4.4 per cent that it hit in March. In a poll conducted by Reuters economists had forecast 5.2 per cent growth in output compared with a 4.6 per cent year-over-year increase in March. As per the data released by the Central Statistics Office of the Ministry of Statistics and Programming, the manufacturing sector, which constitutes more than 77 per cent of the index of industrial production, grew 5.2 per cent; mining rose 5.1 per cent and electricity contributed 2.1 per cent as compared to April 2017.
|Item Group||Weights (%)||Contribution to IIP Growth|
|High Positive Contributors|
|Scientific instruments/ apparatus for drawing, calculating and measurement||0.04||0.5126|
|Cement- all types||2.16||0.3836|
|High Negative Contributors|
|Jewellery of gold (studded with stones or not)||0.44||-0.4452|
|Copper bars, rods & wire rods||0.64||-0.2672|
|Telephones and mobile instruments||0.19||-0.1641|
|Readymade Garments, knitted||0.23||-0.1363|
Last week, the Reserve Bank of India (RBI) had marginally revised upwards its inflation projection for the fiscal 2019 on strong crude oil prices in the global market. The RBI had revised CPI inflation for 2018-19 to 4.8-4.9 per cent in first half of the fiscal and 4.7 per cent in the latter, including the impact of house rent allowance (HRA) for central government employees, with risks tilted to the upside. (With inputs from Agencies)
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