Reaction Quote on IIP & CPI Data release by Shlok Srivastav, Appreciate
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Below the Reaction Quote on IIP & CPI Data release Mr. Shlok Srivastav, Co-founder & COO, Appreciate
“The overall retail inflation rate of 6.83% for August comes as a much-needed point of relief after the 7.44% rate that we saw in July. Given that the government has stepped in to curb rice and tomato exports, a gradual reduction in inflation in September and beyond is to be expected.
As for the IIP data, the industrial output growth of 5.7% in July, up from 3.7% a month earlier, is extremely heartening. Mining has made a particularly impressive comeback, with its output standing at 10.7%, compared to -3.3% a year prior. Power production has also done well, with a growth rate of 8%, compared to 2.3% a year prior.
Overall, these numbers bode well, under the assumption that seasonal factors normalise themselves. Once inflation has been steadied, the RBI should be able to bring it back to its usual comfort zone of 2-6%.”
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