IIP rises to 9-month high of 4.3% in August; CPI inflation steady in September

New Delhi: Industrial production grew at a nine-month high of 4.3 percent in August, mainly on account of robust performance of mining and power sectors coupled with higher capital goods output, official data showed on Thursday.

Factory output growth measured in terms of Index of Industrial Production (IIP) stood at 4 percent in August 2016, as per data released by the Central Statistics Office (CSO).

The previous high in IIP growth was recorded at 5.7 percent in November 2016.

IIP growth during April-August period of this fiscal stood at 2.2 percent, down from 5.9 percent in same period in 2016-17.

Meanwhile, the July IIP number was revised to 0.94 percent from 1.2 percent provisional estimates released last month.

The output growth in manufacturing sector, which constitutes 77.63 percent of the index, however decelerated to 3.1 percent in August from 5.5 percent a year ago.

Reuters.

Reuters.

The output of the mining and electricity sectors grew at 9.4 percent and 8.3 percent as compared to August 2016.

As per use-based classification, the growth rates in August 2017 over August 2016 are 7.1 percent in primary goods, 5.4 percent in capital goods, (-) 0.2 percent in intermediate goods and 2.5 percent in infrastructure/ construction goods.

The consumer durables and consumer non-durables sectors recorded growth of 1.6 percent and 6.9 percent, respectively.

In terms of industries, 10 out of 23 industry groups in the manufacturing sector have shown positive growth during August 2017.

The industry group 'Manufacture of computer, electronic and optical products' showed the highest positive growth of 24.9 percent, followed by 16.5 percent in 'pharmaceuticals, medicinal chemical and botanical products’ and 11.1 percent in 'other transport equipment’.

On the other hand, the industry group 'Manufacture of furniture' showed the highest negative growth of (-) 16 percent, followed by (-) 15.1 percent in 'tobacco products' and (-) 11.4 percent in 'Printing and reproduction of recorded media'.

CPI inflation eases

India's annual retail inflation remained static in September with a marginal drop in the food prices, official data showed on Thursday.

According to the data furnished by the Ministry of Statistics and Programme Implementation, September's consumer price index (CPI) inflation remained static at 3.28 percent as compared to August.

On a sequential basis, the country's Consumer Food Price Index (CFPI) dropped to 1.25 percent during the month under review when compared to 1.52 percent in August 2017.

However, on a year-on-year (YoY) basis, the country's September retail inflation was lower than the 4.39 percent CPI rate reported for the corresponding month of last year.

The YoY CPI dropped to 3.44 percent in urban areas and 3.15 percent in rural areas in September as compared to 3.64 percent and 5.04 percent respectively in the corresponding period last year.

As per the ministry's data, retail inflation on a YoY basis fell due to a fall in the prices of food items like pulses, eggs and spices.

The data on a YoY basis showed that vegetables in September became costly by 3.92 percent, while cereals prices rose by 3.70 percent.

Other notable categories such as milk-based products became dearer by 3.87 percent and meat and fish recorded a rise of 3.19 percent.

Food and beverages during the month under consideration recorded a rise of 1.76 percent over the same month last year.

Among non-food categories, the 'fuel and light' segment's inflation rate accelerated to 5.56 percent in September.

(With inputs from PTI, IANS)


Published Date: Oct 12, 2017 06:45 pm | Updated Date: Oct 12, 2017 06:45 pm


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