India's retail inflation hits 8-month high of 3.18% on back of higher food prices

Agencies
July 13, 2019

New Delhi, Jul 13: India's macro-economic data presented a slightly grim picture as food prices pushed India's retail inflation higher in June, and lower manufacturing output slowed down the country's industrial production in May.

The two key economic macro-data points -- Index of Industrial Production (IIP) for May and Consumer Price Index (CPI) for June -- were released by the Ministry of Statistics and Programme Implementation on Friday.

As per the data furnished by the National Statistical Office (NSO), higher food prices accelerated India's June retail inflation to 3.18 per cent from 3.05 per cent in May.

However, on a year-on-year (YoY) basis, the CPI in June 2019 was lower than the corresponding period of last year when retail inflation stood at 4.92 per cent.

The Consumer Food Price Index (CFPI) inflated to 2.17 per cent during the month under review from an expansion of 1.83 per cent in May 2019.

Product-wise, the prices of milk-based items, egg, meat and fish increased in March YoY. In contrast, a deflation trend was witnessed in the cost of vegetables and pulses. 

Prices of milk-based products rose marginally by 0.68 per cent, while egg became dearer by 1.62 per cent and meat and fish prices recorded a rise of 9.01 per cent.

On a sub-category basis, vegetable prices increased on a YoY basis in June to 4.66 per cent. The category of "pulses and products" became expensive 5. 68 per cent and that of "sugar and confectionery" (-)0.09 per cent.

In terms of IIP, the country's factory output growth eased in May 2019 as it rose by 3.1 per cent from a revised growth of 4.32 per cent reported for April 2019. 

Even on a YoY basis, May's industrial production growth of 3.1 per cent was lower than the 3.8 per cent achieved during the corresponding month of the previous fiscal. 

"The cumulative growth for the April-May 2019 period over the corresponding period of the previous year stands at 3.7 per cent," the Ministry of Statistics & Programme Implementation said in 'Quick Estimates of IIP.

Besides, the output rate of the manufacturing sector rose 2.5 per cent in May from a year-on-year (YoY) rise of 3.6 per cent. On a YoY level, mining production grew 3.2 per cent from a rise of 5.8 per cent and the sub-index of electricity generation was higher by 7.4 per cent from 4.2 per cent.

Among the six use-based classification groups, the output of primary goods, with the highest weightage of 34.04, grew by 2.5 per cent. The output of intermediate goods, which has the second highest weightage, inched up by 0.6 per cent. 

Similarly, output of consumer non-durables rose 7.7 per cent, however, consumer durables slipped (-)0.1 per cent. 

In addition, output of infrastructure or construction goods increased by 5 .5 per cent, but that of capital goods inched-up by 0.8 per cent. In terms of industries, 12 out of the 23 industry groups in the manufacturing sector have showed positive growth during the month under review as compared to the corresponding month of the previous year.

"The industry group 'Manufacture of wood and products of wood and cork, ex cept furniture; manufacture of articles of straw and plaiting materials' has shown the highest positive growth of 24.8 per cent followed by 15.9 per cen t in 'Manufacture of food products' and 9.4 per cent in 'Manufacture of computer, electronic and optical products." 

"On the other hand, the industry group 'Manufacture of paper and paper pro ducts' has shown the highest negative growth of (-) 12.2 per cent followed b y (-) 9.9 per cent in 'Manufacture of furniture' and (-) 8.7 per cent in 'manufacture of fabricated metal products, except machinery and equipment'." 

On IIP, Aditi Nayar, Principal Economist, ICRA said: "The sequential dip in industrial growth in May 2019 reflects the trend in core sector expansion, which offset the shallower drag from the contraction in auto production, as well as an improvement in growth of non oil merchandise exports." 

According to Madhavi Arora, Economist, Edelweiss Securities said: "The CPI inflation ticks up to 3.18 per cent but remains overall benign... The uptick in June was largely led by sequential uptick in food components, while sequential increase in core components moderated." 

"The food inflation seasonal uptrend will likely continue in the near term , albeit stay benign overall, partly reflecting structural change in food in flation dynamics." 

Devendra Pant, Chief Economist, India Ratings and Research, said: "CPI inflation is likely to follow its gradual increasing trend in the first half of this fiscal and likely to touch 4 per cent mark in third quarter (mainly due to base effect). 

"The August 2019 Monetary Policy growth inflation dynamics of Indian economy are evenly balanced," he said.

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Agencies
February 17,2020

New Delhi, Feb 17: The Supreme Court said on Monday that people have a fundamental right to protest against a law but the blocking of public roads is a matter of concern and there has to be a balancing factor.

Hearing pleas over the road blocks due to the ongoing protests at Shaheen Bagh against the Citizenship Amendment Act (CAA), a bench comprising Justices S K Kaul and K M Joseph said its concern is about what will happen if people start protesting on roads.

Democracy works on expressing views but there are lines and boundaries for it, the bench said.

It asked senior advocate Sanjay Hegde and advocate Sadhana Ramachandran to talk to Shaheen Bagh protestors and persuade them to move to an alternative site where no public place is blocked.

The matter has been posted for next hearing on February 24.

People have a fundamental right to protest but the thing which is troubling us is the blocking of public roads, the bench said.

Solicitor General Tushar Mehta said Shaheen Bagh protestors should not be given a message that every institution is on its knees trying to persuade them on this issue.

The apex court said that if nothing works, we will leave it to the authorities to deal with the situation.

Protestors have made their made their point and the protests have gone on for quite some time, it said.

Restrictions have been imposed on the Kalindi Kunj-Shaheen Bagh stretch and the Okhla underpass, which were closed on December 15 last year due to the protests against CAA and Register of Citizens.

The top court had earlier said the anti-CAA protesters at Delhi's Shaheen Bagh cannot block public roads and create inconvenience for others.

The apex court was hearing an appeal filed by advocate Amit Sahni, who had approached the Delhi high court seeking directions to the Delhi Police to ensure smooth traffic flow on the Kalindi Kunj-Shaheen Bagh stretch, which was blocked by anti-CAA protesters on December 15.

While dealing with Sahni's plea, the high court had asked local authorities to deal with the situation keeping in mind law and order.

Separately, former BJP MLA Nand Kishore Garg has filed a petition in the apex court seeking directions to the authorities to remove the protestors from Shaheen Bagh.

One of the pleas has sought laying down of comprehensive and exhaustive guidelines relating to outright restrictions for holding protests or agitations leading to obstruction of public place.

In his plea, Garg has said that law enforcement machinery was being "held hostage to the whims and fancies of the protesters" who have blocked vehicular and pedestrian movement from the road connecting Delhi to Noida.

State has the duty to protect fundamental rights of citizen who were continuously being harassed by the blockage of arterial road, it said.

"It is disappointing that the state machinery is muted and a silent spectator to hooliganism and vandalism of the protesters who are threatening the existential efficacy of the democracy and the rule of law and had already taken the law and order situation in their own hand," the plea had said.

In his appeal, Sahni had sought supervision of the situation in Shaheen Bagh, where several women are sitting on protest, by a retired Supreme Court judge or a sitting judge of the Delhi High Court.

Sahni has said in his plea that protests in Shaheen Bagh has inspired similar demonstrations in other cities and to allow it to continue would set a wrong precedent.

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News Network
July 10,2020

United Nations, Jul 10: India is a "good example" as solar auctions have seen popularity amidst the height of the COVID-19 pandemic, UN chief Antonio Guterres said on Thursday, underlining that renewable energy is the only energy source expected to grow in 2020 and offers more jobs than the fossil fuel industry.

In his remarks to the International Energy Agency "Clean Energy Transition Summit'', UN Secretary-General Guterres urged the international community to commit to further usage of coal and to end all external financing of coal in the developing world.

"Coal has no place in COVID-19 recovery plans. Nations must commit to net-zero emissions by 2050 and submit more ambitious national climate plans before COP-26 next year," he said.

"The seeds of change are there. Renewable energy is the only energy source expected to grow in 2020. Solar auctions have seen popularity amidst the height of the pandemic. India serves as a good example. Renewables offer three times more jobs than the fossil fuel industry," Mr Guterres said.

Last month, Adani Green Energy said it has bagged the first of its kind manufacturing-linked solar contract worth Rs 45,000 crore from the Solar Energy Corporation of India (SECI) to develop 8 GW electricity generation capacity and 2 GW equipment manufacturing facility in the country.

Mr Guterres said he has asked all countries to consider six climate positive actions as they rescue, rebuild and reset their economies.

"We need to make our societies more resilient. We need green jobs and sustainable growth," he said, adding that bailout support to sectors such as industry, aviation and shipping should be conditioned on alignment with the goals of the Paris Agreement.

Countries also need to stop wasting money on fossil fuel subsidies and place a price on carbon, he said, noting that countries need to consider climate risk in their decision making.

"Every financial decision must take account of environmental and social impacts. Overall, we need to work together," he said.

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News Network
January 22,2020

New Delhi, Jan 22: The BJP on Wednesday cited statements of several opposition leaders to accuse them of "abusing" Hindus for their appeasement politics and referred to the Congress as "Muslim League Congress".

Seeking apologies from Congress president Sonia Gandhi and NCP chief Sharad Pawar, BJP spokesperson Sambit Patra said leaders of these parties have used the ongoing protests against the amended citizenship law to "abuse" Hindus.

Chavan has said in a public meeting that the Congress decided to join hands with the Shiv Sena to form government in Maharashtra as Muslims wanted the party to stop the BJP, Patra stated, claiming that it shows the opposition party has nothing to do with people belonging to other religions, including Hindus.

Patra also referred to a statement from an NCP leader to attack the opposition.

Asked about Congress leader Mallikarjun Kharge's reported jibe at the RSS for its "non-participation" in the freedom movement, the BJP leader shot back, asking if parents of Sonia Gandhi, who is of Italian origin, had fought in India's independence struggle.

The Indian National Congress, he said referring to the opposition party's full name, should be called "Muslim League Congress".

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Keshu
 - 
Thursday, 23 Jan 2020

LOL...this is a waste body

This guy cannot even debate with Kanaiah kumar.

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