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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
IIP data show a weak recovery, could dull inflation risk

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...

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