Due to the rise in the prices of food and beverages, the rate of retail inflation rose to 7.34 percent in September, which is the highest in the last eight months. On the other hand, the Industrial Production Index (IIP) for the month of August saw a decline of 8 per cent. 

Retail inflation rose to 7.34 per cent in September as food prices rose. The Consumer Price Index (CPI) based inflation was 6.69 percent in August and 3.99 percent in September 2019. Prior to this, retail inflation was 7.59 percent in January 2020. 

Rise in the price of food items 

According to the data released by the government on Monday, inflation in food items was 10.68 percent in September, which was at 9.05 percent in August. The Reserve Bank of India mainly looks at retail inflation while considering the policy rate. 

Industrial production dropped 8% in August

According to the news agency PTI, industrial production registered a decline of 8 percent in August due to low production in manufacturing, manufacturing, mining and power sectors. According to the Index of Industrial Production (IIP), in August 2020, the production of manufacturing sector declined by 8.6 percent, mining sector output by 9.8 percent and electricity sector by 1.8 percent. 

Corona crisis impact 

In August 2019, the IIP declined by 1.4 percent. The Ministry of Statistics and Program Implementation said in a statement, “It would not be appropriate to compare the IIP data after the outbreak of the Kovid-19 epidemic with the data from the months before the epidemic.” It says, ‘With the gradual easing of restrictions, an improvement in economic activity has been observed accordingly. This improvement has been seen at different levels and also at the level of reporting of data. ‘


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