According to IIP data, manufacturing sector output grew by 1.6% in December, while mining output declined by 4.8%. Power generation also grew 5.1%.
Headline inflation has stayed above RBI’s target zone of 2-6% for the past two quarters, with CPI inflation averaging 6.6 per cent in 2020-21 (Apr-Dec). The Reserve Bank last week lowered retail inflation projection for the current quarter of this fiscal at 5.2%.
Eight core industries’ output contracted 1.3 per cent in December 2020 due to fall in steel and fertilizer output, contradicting hopes of a recovery in line with other economic indicators. The index contracted for the third month in a row.