Debt Market Update
- Retail inflation (CPI) rose to a five-month high of 7.41% in September 2022, up from 7.00% in August. This is the ninth consecutive month that the CPI has come above the RBI’s upper margin of 6%. Food inflation up 8.60% in September 2022 (7.62% in August) was key in hardening of retail inflation.
- Wholesale price-based inflation (WPI) eased to 10.70% in September 2022 (12.41% in August 2022). WPI remained in double digits for the 18th consecutive month owing to rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products, among other articles.
- India’s factory output (IIP) witnessed a contraction of 0.8% in August 2022 (2.4% in July 2022). IIP contracted owing to manufacturing (-0.7%) and mining (-3.9%) with electricity (1.4%) being the saving grace. Over the April-August 2022-23 fiscal, IIP has risen 7.7%, compared to a spike of 29.0% in the corresponding period a year ago.
- The country's exports slipped by 3.52% to USD32.6bn in September 2022 (USD33.0bn in August 2022) as against USD33.8bn in September 2021. Imports during September 2022 expanded by 5.44% to USD59.4bn vis-à-vis USD56.3bn in September 2021, which led to trade deficit widening to USD26.7bn.
- Gross GST collections in September 2022 (reflecting business transactions in August 2022) surged to Rs 1.48 crores clocking 26% YoY growth. This is the third highest collection ever and crossed the Rs 1.40 lakh crore mark for the seventh consecutive month. Collections over the next few months are estimated to be even more buoyant on the back of festive season sales.
