New Delhi, Mar 13 (KNN) India's retail inflation, measured on the basis of Consumer Price Index (CPI), eased to 5.09 per cent in February, providing some respite after remaining stubbornly high for over a year. The latest figure marks a marginal decline from 5.1 per cent in January and 5.69 per cent in December 2023.

Notably, the inflation rate has now stayed within the Reserve Bank of India's tolerance level of 2-6 per cent for six consecutive months. However, it is the 53rd straight week that the headline number has exceeded the RBI's medium-term target of 4 per cent.

The rural inflation rate remained unchanged at 5.34 per cent in February compared to January, while the urban inflation rate eased slightly to 4.78 per cent from 4.92 per cent in the previous month.

The food and beverage segment continued to remain a significant contributor to overall inflation, recording an 8.66 per cent rise in prices compared to 8.3 per cent in January 2024.

On the industrial front, India's Index of Industrial Production (IIP) grew by 3.8 per cent in January 2024, according to official data released on Tuesday. This growth rate is lower than the 5.8 per cent expansion witnessed in January 2023.

An official statement from the National Statistical Office (NSO) highlighted that the manufacturing sector's output grew by 3.2 per cent in January 2024, down from 4.5 per cent in the year-ago month.

However, the mining and power sectors performed better, with production rising by 5.9 per cent and 5.6 per cent, respectively.

During the April 2023 to January 2024 period, the IIP recorded a growth of 5.9 per cent, marginally higher than the 5.5 per cent expansion in the corresponding period a year ago.

While the easing of retail inflation provides some relief, the persistent high levels, particularly in the food segment, and the moderation in industrial output growth may prompt the RBI to maintain its vigilant stance on price pressures.

(KNN Bureau)