In January, retail prices of vegetables rose almost 30%. A stronger than expected inflation report could be the catalyst that drives prices out of the current trading range.
New Delhi- India's factory production grew in January to 7.5 per cent over the same month previous year, and marginally over the 7.1 per cent recorded in December 2017, official data showed on Monday.
The S&P 500 and the Dow slipped on Monday as the US tariffs signed into law last week weighed on industrials, while a rise in tech stocks boosted the Nasdaq to a new record high.
Consumer prices south of the border rose 0.2% in February, in line with expectations and likely alleviating concerns that inflation is about to accelerate, according to the Labor Department.
India's retail inflation fell to 4.44% in February driven by easing prices of food and vegetables.
The indexes for shelter, apparel, and motor vehicle insurance all rose and contributed to the 1-month seasonally adjusted increase in the all items index. Capital goods output grew by 14.6 per cent in January as against a contraction of 0.6 per cent in the same period past year. It expects gross value added - a key measure of growth - to increase 7.2 percent next fiscal year from 6.6 percent this year.
US consumer price growth slowed in February amid a decline in gasoline prices and a moderation in the cost of rental accommodation, the latest indication that an anticipated pickup in inflation probably will be only gradual. The seasonal trend of rising food prices as the summer approaches, may prevent a further dip in food inflation in the ongoing month. 'As expected, CPI inflation eased to 4.44 percent in February 2018, compared to 5.07 percent in the previous month, with all the components witnessing a decline in prices except for health, clothing and footwear, transport and communication.
The mining sector recorded a sharp slowdown with 0.1 per cent growth compared to 8.6 per cent a year ago, while infrastructure/construction goods output grew 6.8 per cent in February from 2.6 per cent last year.
Amongst use-based industries, sectors including capital goods (14.6 per cent), consumer durables (8 per cent) and non-durables (10.5 per cent) showed healthy expansion in January, in an indication that both investments by companies and retail demand are coming back on track.
Government data on Monday showed inflation at 4.44% in February, lower than the 5.07% pace in January.
The Federal Reserve had targeted 2.0% to 2.5% inflation for years, and now 2.0% inflation is most frequently cited as the long-term goal.
A survey of small businesses published on Tuesday showed the share of owners reporting higher selling prices in February hit its highest level since July 2014. In February 2017, however, it was 3.65 per cent.