India’s retail inflation jumped to a three-month high of 4.81 per cent on account of higher food prices, but remains within the tolerable range of the Reserve Bank of India (RBI), the government data showed on Wednesday.

The surge in inflation&nbsp;is being attributed to a higher-than-expected supportive base, besides the rise in vegetable prices, shows the data by the Ministry of Statistics &amp; Programme Implementation.

Last month, the inflation based on the Consumer Price Index (CPI) was at 4.31 per cent. In May it was 2.43 per cent and 7.75 per cent in June of the previous year.

The food basket accounts for nearly half of the CPI. The major elements driving inflation are cereals (12.7 per cent), eggs (7 per cent), milk (8.6 per cent), pulses (10.5 per cent) and spices. Household goods, personal care items, education and health have inflation of above 5 per cent.

Clothing and footwear recorded an inflation of 6.19 per cent, fuel and light inflation were at 3.92 per cent, and miscellaneous saw inflation of 5.19 per cent.

Inflation is an important yardstick for the RBI’s Monetary Policy Committee to determine the repo or the lending rate of the country and it is mandated to ensure that retail inflation hovers around 4 per cent with a margin of 2 per cent on either side.

Last month, the Reserve Bank kept policy rates unchanged at 6.5 per cent and projected retail inflation for the current fiscal to average at 5.1 per cent, with June quarter inflation pegged at 4.6 per cent.

The next policy review is scheduled for early next month.

<h2>India's IIP rises&nbsp;</h2>

On the other hand, India's industrial production surged to 5.2 per cent in May from 4.5% per cent in April 2023, due to good performance by the manufacturing and mining sectors, the official data said.

The factory output growth measured in terms of IIP stood at 19.7 per cent in May 2022, mainly due to a lower base effect.

"The growth rates over corresponding period of previous year are to be interpreted, considering the unusual circumstances on account of COVID 19 pandemic since March 2020," the official statement said.

(With inputs from agencies)

&nbsp;

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

India’s retail inflation jumped to a three-month high of 4.81 per cent on account of higher food prices, but remains within the tolerable range of the Reserve Bank of India (RBI), the government data showed on Wednesday.

India’s retail inflation jumped to a three-month high of 4.81 per cent on account of higher food prices, but remains within the tolerable range of the Reserve Bank of India (RBI), the government data showed on Wednesday. The surge in inflation is being attributed to a higher-than-expected supportive base, besides the rise in vegetable prices, shows the data by the Ministry of Statistics & Programme Implementation. Last month, the inflation based on the Consumer Price Index (CPI) was at 4.31 per cent. In May it was 2.43 per cent and 7.75 per cent in June of the previous year. The food basket accounts for nearly half of the CPI. The major elements driving inflation are cereals (12.7 per cent), eggs (7 per cent), milk (8.6 per cent), pulses (10.5 per cent) and spices. Household goods, personal care items, education and health have inflation of above 5 per cent. Clothing and footwear recorded an inflation of 6.19 per cent, fuel and light inflation were at 3.92 per cent, and miscellaneous saw inflation of 5.19 per cent. Inflation is an important yardstick for the RBI’s Monetary Policy Committee to determine the repo or the lending rate of the country and it is mandated to ensure that retail inflation hovers around 4 per cent with a margin of 2 per cent on either side. Last month, the Reserve Bank kept policy rates unchanged at 6.5 per cent and projected retail inflation for the current fiscal to average at 5.1 per cent, with June quarter inflation pegged at 4.6 per cent. The next policy review is scheduled for early next month. India's IIP rises On the other hand, India's industrial production surged to 5.2 per cent in May from 4.5% per cent in April 2023, due to good performance by the manufacturing and mining sectors, the official data said. The factory output growth measured in terms of IIP stood at 19.7 per cent in May 2022, mainly due to a lower base effect. "The growth rates over corresponding period of previous year are to be interpreted, considering the unusual circumstances on account of COVID 19 pandemic since March 2020," the official statement said. (With inputs from agencies) WATCH WION LIVE HERE

India’s retail inflation jumps to three-month high of 4.81% due to higher food prices

On the day when the Consumer Price Index report was released and the US stock market took a beating, President Joe Biden was busy partying on the White House lawns.

On the day when the Consumer Price Index report was released and the US stock market took a beating, President Joe Biden was busy partying on the White House lawns. Reportedly, Biden threw an 'inflation reduction' party while the CPI report showed inflation hitting a worse-than-expected mark of '8.3' per cent. "Exactly four weeks ago, I signed the Inflation Reduction Act into law. So today, we're celebrating. Tune in at 3 PM ET as I deliver remarks and welcome the leaders and advocates who made it happen to the People's House." tweeted President Biden from his official Twitter account. Exactly four weeks ago, I signed the Inflation Reduction Act into law. So today, we're celebrating. Tune in at 3 PM ET as I deliver remarks and welcome the leaders and advocates who made it happen to the People's House. — President Biden (@POTUS) September 13, 2022 × While the White House was delirious, the stock market was panicking. Reportedly, while the pace of consumer price inflation cooled compared to previous months, it was still touching a record four-decade high. Biden hosting a celebration for the Inflation Reduction Act at the White House (AP) Investors had hoped for better numbers but after the report release, they were forced to sell everything, leading to The Dow falling nearly 1300 points. Moreover, inflation numbers suggest that the US central bank, the Federal Reserve may be hiking interest rates for a record fifth time this year, next week. Read more: Biden signs the Inflation Reduction Act, a toned down version of his Build Back Better plan Meanwhile, US Senate minority leader Mitch McConnell said Biden and Democrats were “out of touch” on inflation. “You can’t make it up: Hours after this terrible inflation report, the White House is hosting an ‘inflation reduction’ celebration. Democrats have spent our economy into disaster and now they’re partying while families pay. They could not look more out of touch if they tried.” tweeted the Republican leader. You can’t make it up: Hours after this terrible inflation report, the White House is hosting an “inflation reduction” celebration. Democrats have spent our economy into disaster and now they’re partying while families pay. They could not look more out of touch if they tried. — Leader McConnell (@LeaderMcConnell) September 13, 2022 × This is not the first time that Biden has come under the scanner for his apathy in the face of a crisis. As reported by WION last month, Biden claimed that the US economy had 'zero inflation' in the month of July, thereby inviting seething criticism from Republicans across the board for trying to manipulate the numbers and present a rosy picture. Read more: President Biden claims US had ‘zero per cent inflation’ in July; gets trolled by Republicans "Before I begin today, I want to say a word about the news that came out today relative to the economy. Actually, I just want to say a number: Zero," Biden had told reporters at the time. The President further added, “Here’s what that means: while the price of some things go up, went up last month, the price of other things went down by the same amount. The result? Zero inflation last month." While Biden may have been technically right, the overall picture was quite different. The CPI report released on the same day revealed that the rate of inflation was down 0.6 per cent from June's 9.1 per cent but it certainly did not mean that inflation had reached the magical 'zero' per cent mark. Investors fear that the Fed hiking rates in an attempt to get ahead of inflation may be pushing the economy towards recession. However, for two consecutive months, Biden and his executives have failed to read the room and indulged in a PR party. Read more: Zero probability of recession in India while US has a 40 per cent chance: Study (With inputs from agencies) WATCH WION LIVE HERE:

Biden parties as stock market tumbles, inflation worsens and Fed indicates rate hike

China's factory inflation slowed in November, a sign demand remains weak amid Beijing's ongoing trade war with the United States, while consumer inflation also flagged, official data showed Sunday.

The producer price index an important barometer of the industrial sector that measures the cost of goods at the factory gate&nbsp;climbed 2.7% on-year in November.

It ticked down from 3.3% the previous month, recording its weakest growth since October 2016, while remaining in line with the forecast in a Bloomberg News survey.

A slowdown in factory gate inflation reflects sluggish demand.

The consumer price index (CPI) &nbsp;a key measure of retail inflation rose 2.2% on-year, compared with 2.5% in October.

Food prices, up 2.5%, rose quicker than non-food prices, which were up 2.1%. Energy prices fell over the month.

"The broad moderation in inflationary pressures appears to be a reflection of weaker demand growth over the past half a year and should alleviate concerns about possible stagflation," said Goldman Sachs Economic Research in a report.

The weak figures come as China's trade war with the US continues to bite and its economy shows signs of slowing. The Asian giant recorded a GDP growth of 6.5% in the third quarter its weakest in nine years.

The growth of China's trade with the rest of the world slowed last month, with exports up 5.4% and imports up 3% on-year&nbsp;compared with 15.6% and 21.4% respectively in October.

Washington and Beijing announced a tariff truce at the start of December, to allow for trade negotiations by delaying a hike in new duties by 90 days.

The US suspended its plans to raise tariffs on $200 billion in Chinese imports to 25 per cent beginning January 1, leaving them at the current 10 per cent rate.

China's factory inflation slowed in November, a sign demand remains weak amid Beijing's ongoing trade war with the United States, while consumer inflation also flagged, official data showed Sunday.

China's factory inflation slowed in November, a sign demand remains weak amid Beijing's ongoing trade war with the United States, while consumer inflation also flagged, official data showed Sunday. The producer price index an important barometer of the industrial sector that measures the cost of goods at the factory gate climbed 2.7% on-year in November. It ticked down from 3.3% the previous month, recording its weakest growth since October 2016, while remaining in line with the forecast in a Bloomberg News survey. A slowdown in factory gate inflation reflects sluggish demand. The consumer price index (CPI) a key measure of retail inflation rose 2.2% on-year, compared with 2.5% in October. Food prices, up 2.5%, rose quicker than non-food prices, which were up 2.1%. Energy prices fell over the month. "The broad moderation in inflationary pressures appears to be a reflection of weaker demand growth over the past half a year and should alleviate concerns about possible stagflation," said Goldman Sachs Economic Research in a report. The weak figures come as China's trade war with the US continues to bite and its economy shows signs of slowing. The Asian giant recorded a GDP growth of 6.5% in the third quarter its weakest in nine years. The growth of China's trade with the rest of the world slowed last month, with exports up 5.4% and imports up 3% on-year compared with 15.6% and 21.4% respectively in October. Washington and Beijing announced a tariff truce at the start of December, to allow for trade negotiations by delaying a hike in new duties by 90 days. The US suspended its plans to raise tariffs on $200 billion in Chinese imports to 25 per cent beginning January 1, leaving them at the current 10 per cent rate.

China's factory gate inflation eases