India's retail inflation stays above 7%; IIP growth hits 12-month high

Electricity was the biggest driver of industrial output, rising 23.5%. Manufacturing output grew by 20.6%, while mining output grew by 10.9%

India’s retail inflation rate in June remained above the upper tolerance limit of the central bank for a sixth straight month, increasing chances of further monetary policy tightening, even as industrial production in May jumped to a 12-month high, supported by a low base.

Data released by the National Statistical Office on Tuesday showed that the Consumer Price Index (CPI)-based inflation eased only marginally to 7.01 per cent in June from 7.04 per cent in the previous month, while the Index of Industrial Production (IIP) grew 19.6 per cent in May compared to 6.7 per cent in April.

In April, headline retail