Retail inflation inched up to 7 per cent in August from 6.71 per cent in July mainly due to higher food prices, government data showed on Monday. The Consumer Price Index (CPI)-based inflation was above the Reserve Bank of India’s (RBI) comfort level of 6 per cent for the eighth month in a row. According to the data, inflation in food basket was 7.62 per cent in August, up from 6.69 per cent in July and 3.11 per cent in August 2021. 

Meanwhile, growth in the Index of Industrial Production (IIP) decelerated to a four-month low of 2.4 per cent in July mainly due to poor showing by manufacturing, power and mining sectors, according to official data released on Monday. 

The data showed that the previous low in growth of industrial output was recorded at 2.2 per cent in March this year. IIP had grown by 6.7 per cent in April, 19.6 per cent in May and 12.7 per cent in June. 

Factory output, measured in terms of the IIP, had expanded by 11.5 per cent in July 2021. 

Manufacturing sector expanded by 3.2 per cent in July 2022 compared with 10.5 per cent recorded in the year-ago period, according to the data released by the Statistics and Programme Implementation Ministry. 

Power sector showed growth of 2.3 per cent against 11.1 per cent a year ago. The mining sector witnessed a contraction of 3.3 per cent in July 2022, whereas there was growth of 19.5 per cent in the year-ago period. 

During April-July this year, IIP had risen by 10 per cent against 33.9 per cent growth in the same period a year ago. 

Capital goods output, which is a barometer of investments, rose by 5.8 per cent in July 2022 against 30.3 per cent growth in the year-ago month. 

Consumer durables segment grew by 2.4 per cent compared with 19.4 per cent growth a year ago. 

Primary goods segment, which accounts for nearly 34 per cent of the index, expanded by 2.5 per cent in July compared with 12.4 per cent growth in the year-ago period. 

The ministry said that the growth rates over the corresponding period of the previous year were to be interpreted considering the unusual circumstances on account of COVID-19 pandemic since March 2020.