India’s IIP growth eased to 13.6 per cent in June 2021 led by the base effect. Notably, over a 2-year horizon, the output is down by 5.2 per cent led by capital goods and durables. FMCG has expanded. CPI inflation has cooled off to 5.6 per cent in July 2021 (6.3 per cent in June 2021) led by food inflation at 4 per cent (110bps MoM decline). Within food, prices of vegetables fell, while that of fruits, pulses, oils and fats moderated. Core too softened to 6 per cent (6.2 per cent in June 2021), led by transport and communication and personal care and effects.