IIP data show a weak recovery, could dull inflation risk
Month-on-month consumer price inflation is benign; the restrictions on business because of the second wave will weaken the recovery
April 13, 2021 / 09:53 AM IST
REUTERS/Danish Siddiqui - RTX30FXQ
Consumer price inflation for the month of March 2021 came in at 5.5 per cent from a year ago, compared to 5 per cent in February.
On the other hand, industrial production in February shrank by 3.6 per cent compared to a year ago, while it was down 0.9 per cent year-on-year in January.
At first glance then industrial production seems to be shrinking while inflation is rising. But a closer look throws up a different picture.
First, consider inflation. One reason...