Industrial production for two years, retail inflation at 17-month high

After the increase in both the economic scale, the demand for reduction in interest rates has receded. Reserve Bank Governor-led Monetary Policy Committee will review monetary policy next month

New Delhi: There is a mixed report on the economic front before the general budget. On one hand, where the retail inflation was above five per cent, the rate of increase in industrial production was more than eight per cent.

After the increase in both the economic scale, the demand for reduction in interest rates has receded. Reserve Bank Governor-headed Monetary Policy Committee will review the monetary policy at the beginning of next month. It is no longer expected that the committee will make any reduction in the policy interest rate. The reason is that according to the agreement between the Central Government and the Reserve Bank, the retail inflation rate target is 4%, but it will be less than two per cent-less acceptable. In other words, retail inflation should be at least two percent and at most six percent.

Retail inflation
, according to data released by the Statistics Department in the month of December while was retail inflation recorded 5.21 percent in November, the rate was 4.88 percent. Retail inflation, thus, reached the highest level of 17 months. Talking about the retail inflation of food items, it increased to 4.96 per cent in December from 4.35 per cent in November.

The biggest role in raising retail inflation is that of vegetables, the same egg and fruits are not left behind. Retail prices of vegetables were seen to increase by more than 29 per cent, while in the case of eggs, retail inflation was nearly 9.5 per cent and vegetables accounted for about seven per cent. For the past few years, vegetables, especially the first tomato and now the price of onions are running. On the other hand, the demand for egg has increased with the increase of winter, due to which its price has increased. According to experts, the decrease in the price of vegetables will be seen, but the price of the egg will remain in the process for the moment.

Industrial production rate
Meanwhile, the news of relief for the government, which has been criticizing the economy of sluggishness, is that industrial production has reached the highest level of about 25 months. In November, the industrial production rate was 8.4 percent and in the month of October it was 2.2 percent. The special thing is that the manufacturing rate of manufacturing sector is in double digits. In November, the rate was 10.2 percent, compared to 2.2 percent in October.

Increasing the speed of manufacturing can give good news on the employment front. Because of the increase in industrial production, whereas on the one hand there is an expansion of its capacity on the one hand, on the other hand new projects are also indicated. Both will create new opportunities for direct and indirect employment. Normally, if a person gets direct jobs, then on average, four people get indirect employment