New Delhi. On Tuesday, Finance Minister Nirmala Sitharaman claimed that the economy is on the path of reform and he cited seven indicators for it. However, due to food and food prices becoming expensive, retail inflation rose to 7.59% in January, which is a high level of 6 years. Prior to this, there has also been a decrease in the pace of industries in December.
This is the sixth consecutive month when inflation has seen an increase. According to government data, Consumer Price Index (CPI) based retail inflation stood at 7.35% in December 2019. At the same time, it was 1.97% in the month of January last year. Inflation in January has been well above the Reserve Bank of India's (RBI) target of 4%. In January, the inflation rate of vegetables increased to 50.19%, while in December 2019 this figure was 60.50%. Similarly, the inflation rate of oilseeds was 5.25%. The rate of inflation of pulses and related products was 16.71%.
At the same time, the pace of industries has also registered a decrease in December. The growth rate of industrial production in December has seen a decline of 0.3%. It registered a growth of 2.5% in the same period last year. This decline has occurred due to reduced production of manufacturing sector. The manufacturing sector recorded a 1.2% decline in production, compared to a 2.9% growth in the same period last year.
The growth rate of electricity generation has come down to 0.1%, as compared to December 2018. It saw an increase of 4.5%. The mining sector saw an increase of 5.4% in production, compared to a 1% decline earlier. IIP growth declined to 0.5% in the April-December period of the current financial year, compared to a growth of 5.7% in the same period of the previous financial year.