{"id":1517,"date":"2022-04-13T03:39:03","date_gmt":"2022-04-13T03:39:03","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=1517"},"modified":"2022-04-13T03:39:10","modified_gmt":"2022-04-13T03:39:10","slug":"inflation-soar-to-6-95-in-march-industrial-production-grew-up-by-1-7-in-feb","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/inflation-soar-to-6-95-in-march-industrial-production-grew-up-by-1-7-in-feb\/","title":{"rendered":"Inflation soar to 6.95%  in March; Industrial production grew up by 1.7% in Feb"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>India is a\ngrowing and developing country, but high inflation becomes a bump in the\ndevelopment of the economy. <\/p>\n\n\n\n<p>On 12<sup>th<\/sup>\nMarch 2022, National Statistics Office released the official number for Monthly\nInflation and industrial productivity.<\/p>\n\n\n\n<p><strong>Inflation<\/strong><\/p>\n\n\n\n<p><strong>The consumer price index rose to a seventeen-month high of 6.95% in March 2022<\/strong> much higher than the 6.07% recorded in the previous month. The inflation number also superseded the market estimate of 6.35% and also RB\u2019s estimate of 6.3%&nbsp; average inflation for Jan-March,2022.  <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"609\" height=\"337\" src=\"https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/04\/inflation.png\" alt=\"\" class=\"wp-image-1518\" srcset=\"https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/04\/inflation.png 609w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/04\/inflation-300x166.png 300w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/04\/inflation-520x288.png 520w\" sizes=\"auto, (max-width: 609px) 100vw, 609px\" \/><\/figure>\n\n\n\n<p>Reason for\nhigher inflation<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>A\nlarge portion of the increase is amid a rise in the prices of animal protein.<\/li><li>The\nsecond is edible oil which surged by 5.3% on an MoM basis.<\/li><li>The\nfuel and light group posted annual inflation of 7.52%.<\/li><\/ul>\n\n\n\n<p>With a continuous\nrise in inflation, the market can expect a rate hike by the apex bank of the\ncountry RBI. It could be a gradual rise in interest rate by 50-75 basis points\nby the end of Q2 of FY2023 and then we can further expect a second hike if\ninflation doesn\u2019t come under control.<\/p>\n\n\n\n<p><strong>Index of\nIndustrial Production (IIP)<\/strong><\/p>\n\n\n\n<p>It measures\nthe factory output during a particular period. The IIP data is released 45 days\nafter the month ends. To the data released by the National Statistics Office\n(NSO), on 12<sup>th<\/sup>&nbsp; March, the <strong>IIP\nfor Feb grew by a mere 1.7% on year on year basis to 132.1. <\/strong><\/p>\n\n\n\n<p><strong>&nbsp;IIP in the FY2021-22( April 2021- Feb 2022)\nhas surged by 12.5%&nbsp; compared to a\ncontraction of 11.1% for the corresponding period a year ago.<\/strong><\/p>\n\n\n\n<p>The growth\nin IIP is attributed to:-<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The\nmining and Electricity sectors rose by 4.5% each for the same month to 123.2\nand 160.8, respectively.<\/li><li>The\nkey manufacturing sector grew by 0.8% to 130.8.<\/li><\/ul>\n\n\n\n<p>The matter\nof concern is the reduction in the production of capital goods which grew by\n1.1% on a YoY basis against 1.4% growth recorded in January 2022. Further\ncapacity utilization is also below the benchmark of 75% and currently stands at\n72.4%. <\/p>\n\n\n\n<p>&nbsp;Investors and the market will have to wait to\nsee RBI\u2019s stance on the situation of higher inflation and slower industrial\nproduction a double whammy situation, in their next meeting to be held in June.<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 1,998<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"1517\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">4    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>India is a growing and developing country, but high inflation becomes a bump in the development of the economy. On 12th March 2022, National Statistics [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/inflation-soar-to-6-95-in-march-industrial-production-grew-up-by-1-7-in-feb\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":1520,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,48,10],"tags":[173,197,198],"class_list":["post-1517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-economy","category-featured","tag-inflation","tag-cpi","tag-iip"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=1517"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1517\/revisions"}],"predecessor-version":[{"id":1521,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1517\/revisions\/1521"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/1520"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=1517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=1517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=1517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}