The index of industrial production (IIP) for February 2018 is expected to be between 5.9% and 7.8%, compared to January's 7.5% according to a poll conducted by CNBC-TV18.

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Despite a month-over-month fall, the IIP will continue being robust for the month, fueled by the manufacturing sector.

The general index of industrial production for the month of January 2018 was at 132.3, or 7.5% higher compared to the same period, last year, propelled by a robust growth in the manufacturing and electricity sector.

The cumulative growth for April-January 2017-18 period was at 4.1%.

source: tradingeconomics.com

The slowdown of pace slowdown of pace due to demonetisation and the implementation of the Goods and Services Tax is wearing off, due to which the industrial sector is recovering, the Economic Times said.

The indices for manufacturing rose 8.7% to 133.8, electricity rose 7.6% to 149.5 and mining was up marginally by 0.1% to 144.5 in January 2018.

The month of January was the third-month in a row to register a high IIP rate.

In a poll conducted by CNBC-TV18, the range of the IIP for February 2018 is expected to be in between 5.9% to 7.8%.

According to the poll, CPI rates are expected to fall further to about 4.2% in the month of March 2018 from 4.4% in February 2018, on a month-over-month basis.

Inflation is expected to soften on account of a sustained decline in vegetable prices, and a likely fall in the sugar prices.

The consumer price index (CPI) for the month of February 2018 fell to 136.40 points from 136.90 points in January 2018, helped by a decline in inflation in food and fuel.

source: tradingeconomics.com

CPI rates for FY 19 are largely expected to be between 4.5-5%, providing the headroom to keep rates on hold in 2018, Radhika Rao, an economist at DBS Bank told Economic Times.

The Monetary Policy Committee in February expressed its concern over the inflationary risks attached to high food and global crude prices, and the government’s decision to increase spending for the year, starting April to support a struggling farm sector.

First Published:Apr 12, 2018 2:51 PM IST