Twin shocks for economy as growth slumps, retail inflation picks up

The RBI would be watching this number closely and an adverse report on monsoon or a further spike in oil prices could hasten a rate hike in the coming policy

The economy showed worrying signs as industrial growth slumped in May and retail inflation picked up in June,  presenting a difficult choice on the policy rate  front for the monetary policy committee (MPC) before its meeting next month.

The Consumer Price Index (CPI)-based inflation rate rose to a five-month high of 5 per cent in June, overshooting the Reserve Bank of India’s (RBI’s) projection of 4.8-4.9 per cent in the first half of 2018-19, shows the official data released on Thursday.

Separately, the Index of