<div align="justify">India’s retail inflation fell to a five-year low at 2.18% in May, backed by deflation in food and vegetable prices, and industrial production output slowed to 3.1% year-on-year in April due to manufacturing, mining and power sectors showing poorly.<br /><br />While vegetable prices declined by 13.44% in May, food inflation declined 1.05%. Lower inflation may put pressure on the Reserve Bank of India to cut key interest rates in its August policy review. The RBI had chosen to maintain a status quo on rates but the move was vehemently criticised by the Finance Ministry.<br /><br />This time the consumer price inflation is lowest since the government started coming out with separate CPI index in 2012.<br /><br />Industrial production growth, however, slowed to 3.1% in April compared with last year due to manufacturing, mining and power sectors scoring badly.<br /><br />The government data showed manufacturing sector, which constitutes nearly 78% of the industrial production index, grew at 2.6% in April compared with 5.5% in April last year.<br /><br />Mining sector output grew at 4.2% in April as against 6.7% last year. Power sector output grew by 5.4% compared with 14.4% last year.<br /><br />The output of capital goods, however, contracted by 1.3% in April compared with a growth of 8.1% a year ago. <br /><br />Capital goods performance is an indicator of the level of investment taking place in the economy.<br />Consumer durables too declined by 6% in April against a growth of 13.8% last year. Consumer non-durables, however, grew 8.3% in April. <br /><br />Meanwhile, the industry reiterated its demand for an interest rate cut by the RBI, saying it was imperative to boost growth and consumer demand.<br /></div>
<div align="justify">India’s retail inflation fell to a five-year low at 2.18% in May, backed by deflation in food and vegetable prices, and industrial production output slowed to 3.1% year-on-year in April due to manufacturing, mining and power sectors showing poorly.<br /><br />While vegetable prices declined by 13.44% in May, food inflation declined 1.05%. Lower inflation may put pressure on the Reserve Bank of India to cut key interest rates in its August policy review. The RBI had chosen to maintain a status quo on rates but the move was vehemently criticised by the Finance Ministry.<br /><br />This time the consumer price inflation is lowest since the government started coming out with separate CPI index in 2012.<br /><br />Industrial production growth, however, slowed to 3.1% in April compared with last year due to manufacturing, mining and power sectors scoring badly.<br /><br />The government data showed manufacturing sector, which constitutes nearly 78% of the industrial production index, grew at 2.6% in April compared with 5.5% in April last year.<br /><br />Mining sector output grew at 4.2% in April as against 6.7% last year. Power sector output grew by 5.4% compared with 14.4% last year.<br /><br />The output of capital goods, however, contracted by 1.3% in April compared with a growth of 8.1% a year ago. <br /><br />Capital goods performance is an indicator of the level of investment taking place in the economy.<br />Consumer durables too declined by 6% in April against a growth of 13.8% last year. Consumer non-durables, however, grew 8.3% in April. <br /><br />Meanwhile, the industry reiterated its demand for an interest rate cut by the RBI, saying it was imperative to boost growth and consumer demand.<br /></div>
