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Statsguru: Economic climate worsens; industrial growth slows to 7-month low

The recent economic data suggests a worsening of the macro-economic environment

Indian economy, economy
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Ishan Bakshi
The recent economic data suggests a worsening of the macro-economic environment.

Industrial activity slumped to a seven-month low, while the retail inflation rate rose to a five-month high and the trade deficit widened to its highest in more than five years.

The consumer price index (CPI) rate rose to 5 per cent in June, up from 4.87 per cent in May as seen in Chart 1. Adding to worries, the core inflation rate firmed up to 6.4 per cent, while the food inflation rate decelerated to 2.9 per cent (Chart 2). The latter, though, is expected to rise in the coming months