Double trouble of stagflation looms large
However, with the pandemic rearing its head again and our vaccination drive faltering, stagflation is indeed a real threat.
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EXPRESS ILLUSTRATION
Monday opened with double trouble. Data released by the Ministry of Statistics & Programme Implementation showed that retail inflation, measured by the Consumer Price Index (CPI), advanced to 5.52% for March from 5.03% in February. Simultaneously, factory output, reflected in the Index of Industrial Production (IIP), contracted by 3.6% for February compared to a year ago, falling to 129.4. This is a big fall considering IIP had grown 5.2% in the corresponding month of February 2020. For the 11 months of FY2021, the industrial sector has contracted 11.3%, as compared to the marginal growth of 1% registered for the corresponding period of FY2020.