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New Delhi - India's annual retail inflation dropped to a two-year low of 8.79% year-on-year in January largely due to a drop in the prices of vegetables, government data showed Wednesday.
The provisional figures for inflation linked to a consumer price index showed a decrease for the second consecutive month and provided some cheer to a government struggling with a slowing economy and high inflation with general elections due in May.
Retail inflation stood at 9.87% in December. The lower inflation data was, however, offset by a contraction in the country's industrial output for the third consecutive month.
Fresh data showed that the Index of Industrial Production (IIP) had contracted 0.6% year-on-year in December.
Manufacturing output dropped by 1.6% and eight of 22 industry groups in the index showed negative growth, a statement from the Ministry of Statistics said.
Production in the capital goods segment, which is seen as an indicator of investment demand in the economy, contracted 3% in December.
The provisional figures for inflation linked to a consumer price index showed a decrease for the second consecutive month and provided some cheer to a government struggling with a slowing economy and high inflation with general elections due in May.
Retail inflation stood at 9.87% in December. The lower inflation data was, however, offset by a contraction in the country's industrial output for the third consecutive month.
Fresh data showed that the Index of Industrial Production (IIP) had contracted 0.6% year-on-year in December.
Manufacturing output dropped by 1.6% and eight of 22 industry groups in the index showed negative growth, a statement from the Ministry of Statistics said.
Production in the capital goods segment, which is seen as an indicator of investment demand in the economy, contracted 3% in December.
