Industrial Growth Dips & Retail Inflation Rises | 13 Jul 2018

India’s industrial growth slowed to a seven-month low in May while consumer inflation breached the central bank’s forecast for the first half of the fiscal year, marking twin setbacks for an economy.

Both the slowdown in industrial output growth and jump in price pressure add to the worries of policymakers who are already concerned about sticky global oil prices.
Retail inflation, based on Consumer Price Index (CPI), rose to 5 percent in June, a five-month high, despite easing food prices.

Consumer Price Index (CPI)

CPI (Rural/Urban/Combined) is compiled by the Central Statistics Office (CSO) in the Ministry of Statistics and Programme Implementation.
CPI for Industrial Workers (IW) and CPI for Agricultural Labourers (AL) / Rural Labourers (RL) are compiled and released by the Labour Bureau in the Ministry of Labour and Employment.
It is based on the retail prices of products and measures inflation from the consumer side. RBI uses CPI (combined) to monitor inflation.
It covers only the consumer goods and consumer services.
Base Year: 2012
The Index of Industrial Production (IIP) slipped to 3.2% in May 2018 mainly due to sluggish performance of manufacturing and power sectors coupled with poor off-take of fast moving consumer goods (FMCG).

Index of Industrial Production (IIP)

IIP is an index which details out the growth of various sectors.
All India IIP is a composite indicator that measures the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period.
It is compiled and published monthly by the Central Statistical Organization (CSO) six weeks after the reference month ends.
Base Year: 2011-12