Retail inflation fell to 8.1% in February and is now already close to the RBI’s target of 8% for January 2015. Sustaining it at these levels however, will be crucial given the upward momentum in inflation of certain food categories. Although there was some respite on the inflation front, industrial production continued to remain weak. In January, the Index of industrial production (IIP) grew at an anaemic 0.1% compared to a year ago. Manufacturing output, which accounts for three-fourths of the index, fell by 0.7% year-on-year. Mining output however rose in January, showing signs of a nascent recovery after contracting for two consecutive years.