Retail Inflation climbs the ladder in April ; IIP down marginally

The retail inflation data has come out higher than expected as the prices have grown by 5.39 percent. The food and fuel prices have been viewed as the main culprits, with food inflation standing at 6.32 percent vs 5.21 percent month on month. Rural inflation stands at 6.09 percent versus 5.7 percent month on month.

Vegetables' price inflation has come out at 4.82 percent versus 0.54 percent month on month.  Cereal & product inflation stands at 2.43 percent versus 2.43 percent month on month.

The industrial production as represented by March IIP (Index of Industrial Production) index has fallen by 0.1 percent, indicating sluggishness in the economy. Manufacturing sector output has been reported at negative 1.2 percent versus 0.7  percent growth month on month. The electricity output stands at 11.3 percent versus 9.6 percent month on month. The mining sector output stands at negative 0.1 percent versus 5 percent month on month.

The CPI , indicating retail inflation data, was at a 6 month low in March. The current surge is higher than expected by market observers. The IIP data for the month of February bucked the trend by gaining ground after several month's of negative reading. March IIP data can be termed as flat to negative.