Retail inflation rises to 5.03% in February; factory output contracts 1.6% in January

NEW DELHI: Retail inflation based on consumer price index (CPI) rose to 5.03 per cent in February from 4.06 per cent in January, government data showed on Friday.
The inflation number stood within the Reserve Bank of India’s (RBI’s) target of 2-6 per cent for the third consecutive month.
The RBI mainly factors in the retail inflation while arriving at its bi-monthly monetary policy.
The RBI’s monetary policy committee (MPC) has been tasked by the government to tame retail inflation based on consumer price index (CPI) at 4 per cent (+,-2 per cent).
In a separate set of data, industrial production contracted 1.6 per cent in January.
While manufacturing sector output contracted by 2 per cent, mining declined 3.7 per cent.
Meanwhile, power generation grew 5.5 per cent during the period under consideration.
The IIP had grown by 2.2 per cent in January 2020.

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