Inflation up 3.05 percent in May and IIP growth up 3.4 percent in April 2019
The Consumer Price Index(CPI) Inflation in May 2019, increased to 3.05 percent, but IIP growth were up 3.4 percent in April this year. The Retail Inflation(CPI) was at 2.92 percent in the month of April.
Retail Inflation in the month of May 2019, which is the highest in the last seven months. This is said to have risen due to higher Food prices. Earlier, the inflation for April 2019 was revised upwards to 2.99 percent from the 2.92 percent.
However the inflation rate remains within 4 percent of the RBI Policy for the past ten months. India’s average inflation were stands at 6.11 percent since the year 2012. Meat and Fish prices were increased to 8.12 percent and Vegetables at 5.46 percent in May 2019.
Oil and Fat product prices were increased to 0.91 percent, but Fruits fell down to 5.17 percent during the same month. Housing inflation rose in May, but the cost of Clothing and Footwear declined.
The Industrial Production(IIP) grew by 3.4 percent in the month of April 2019, despite Inflation rising. Generally, the IIP(Index of Industrial Production) is an index which tells out the growth story of different sectors like Manufacturing, Electricity and Mining.
The recent growth in IIP is the highest level seen in the last six months. Manufacturing, Mining and Electricity have achieved significant growth in April as compared to March 2019.
India’s IIP has averaged 6.28 percent in the last 15 years. The Manufacturing was seen increased to 2.8 percent, Mining to 5.1 percent and Electricity were rose to 6 percent for the month of April.
An investor should consider the inflation rate while making a decision on Investment options. It is said to be sad, most of the people do not add inflation to their Family Budget. Due to this, it is difficult for the Financial Planning and achieving long term goals such as Education, Marriage and Retirement.
Kindly share your views / comments with a smile 🙂