Capital Goods production spurts in January
Updated: Mar 13, 2015 04:07:22pm
New Delhi, March 13 (KNN) A spurt in the volatile capital goods segment, which recorded a higher-than-expected 12.8 per cent, drove the growth in overall factory output in January. As per the data released on Thursday, industrial output increased in January 2015 at 2.6 per cent, higher than the 1.1 per cent growth in the same month last year.
However, consumer durables continued to be a picture of worry, reflecting tepid consumer demand. While mining output contracted in January this year at 2.8 per cent (against 2.7 per cent growth), electricity generation grew much slower than expected at 2.7 per cent (6.5 per cent).
At the same time retail inflation, as measured by a new consumer price index, rose to a four-month high of 5.37 per cent in February, largely due to a spike in the prices of vegetables and pulses, official data showed. Showing a mixed picture of the economy, the situation is complicating things for Reserve Bank of India Governor Raghuram Rajan ahead of the April 7 monetary policy review.
Citing slowing inflation, the RBI Governor had last week made an unscheduled interest rate cut, the second this year.
The mixed signals arising from the two data points — factory output and retail inflation — may now reduce the chances of the RBI going in for another rate cut in the policy review next month, say economy watchers. (KNN/DB)
However, consumer durables continued to be a picture of worry, reflecting tepid consumer demand. While mining output contracted in January this year at 2.8 per cent (against 2.7 per cent growth), electricity generation grew much slower than expected at 2.7 per cent (6.5 per cent).
At the same time retail inflation, as measured by a new consumer price index, rose to a four-month high of 5.37 per cent in February, largely due to a spike in the prices of vegetables and pulses, official data showed. Showing a mixed picture of the economy, the situation is complicating things for Reserve Bank of India Governor Raghuram Rajan ahead of the April 7 monetary policy review.
Citing slowing inflation, the RBI Governor had last week made an unscheduled interest rate cut, the second this year.
The mixed signals arising from the two data points — factory output and retail inflation — may now reduce the chances of the RBI going in for another rate cut in the policy review next month, say economy watchers. (KNN/DB)
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