IIP slips to 4.3%, CPI rises to 3.21%

Industrial production growth dropped to 4.3% in July due to a slowdown in the manufacturing sector, data released by the government showed on Thursday.

Retail inflation rose marginally to 3.21% in August from 3.15% last month on the back of higher food prices, the government data showed on Thursday.

Factory output as measured in terms of the Index of Industrial Production (IIP) was recorded at 6.5% in July 2018.

The manufacturing sector grew at 4.2% in July as compared to 7% a year ago, according to a statement issued by the Ministry of Statistics and Programme Implementation.

The power generation sector grew at 4.8% as compared to 6.6% in July last year. Mining growth was 4.9% in July as against 3.4% in the corresponding month of previous fiscal.

The IIP for the mining, manufacturing and electricity sectors for July 2019 stand at 100.2, 132.9 and 169.7 respectively with the corresponding growth rates of 4.9%, 4.2% and 4.8% as compared to July 2018.

The cumulative growth in these three sectors from April to July 2019 over the corresponding period of 2018 has been 3.4%, 2.8% and 6.6% respectively.  

August’s Consumer Price Index (CPI) food price inflation stood at 2.99% as compared to 2.36%  month-on-month, said a statement issued by the Ministry of Statistics and Programme Implementation. This is the 13th straight month where inflation has remained below the RBI target of 4%.