IIP shoots up on low base, retail inflation eases to a three-month low

Economists say policy rate reduction unlikely

Industrial production was up 22.4 per cent in March on a low year-on-year (YoY) base against a 3.4 per cent contraction in February, the data released by the National Statistical Office showed on Wednesday.

Also retail inflation eased to a three-month low in April. As localised lockdowns intensify in the country owing to the second pandemic wave, economists caution prices will increase, dimming prospects of policy rate reduction by the monetary policy committee of the central bank.

Rising global commodity prices are expected to add to inflationary pressures, while industrial growth is expected to recede in May with economic activity increasingly getting