Inflation under control for the second consecutive month, but sluggish industrial production disappointed

There is some relief news for the government on the inflation front, especially when there are elections in the states. Retail inflation rate is under control in the month of August.

CPI inflation: There is relief news for the government on the inflation front, especially when there are elections in the states. Retail inflation is under control in the month of August. According to the data released by the National Statistical Office (NSO) on Thursday, the retail inflation rate based on the Consumer Price Index was 3.65 percent in August, which was 3.6 percent in July 2024. In August, the inflation rate in rural areas was 4.16 percent and in urban areas it was 3.14 percent, although the slow pace of industrial production growth has disappointed. The industrial production rate stood at 4.8 percent in August.  

Slowdown in industrial production growth 

Due to the poor performance of the mining and manufacturing sectors, the growth rate of industrial production slowed down to 4.8 percent. Due to the poor performance of the construction and mining sectors, the growth of industrial production of the country declined to 4.8 percent on an annual basis in the month of July. Industrial production had increased by 6.2 percent in July 2023. According to an official statement, the country's industrial production index has increased by 4.8 percent in July this year. 

Meanwhile, the NSO revised the industrial production figure for June 2024 to 4.7 percent. Last month it was reported to be 4.2 percent. According to a statement by the Ministry of Statistics and Program Implementation, the manufacturing sector output grew by 4.6 percent in July, while it grew by 5.3 percent in the same month a year ago. The growth rate of the mining sector stood at 3.7 percent in July 2024 as against 10.7 percent in the same period last year. According to official data, infrastructure and construction goods registered a growth of 4.9 percent in July 2024, which is less than the growth of 12.6 percent in the same period a year ago. The production of primary goods registered a growth of 5.9 percent in July this year, which is less than the growth of 7.7 percent in the same period a year ago.