CPI rises 3.28% in September; August IIP jumps 4.3%

Industrial production has made a remarkable growth at 4.3% defying slowdown from previous month’s 1.2

Data released by the Central Statistics Office (CSO) on Thursday reflected signs of a turnaround in industrial production after the abysmal 0.9% growth recorded in July.

The total growth in the overall output at the factory was 2.2 percent over the months of April to August which is much lower than that of previous year which was around 5.9 percent. The previous high in IIP growth was recorded at 5.7 per cent in November 2016.

Data released by the Central Statistics Office (CSO) showed that the August growth was partly led by a revival in electricity, which grew at 8.3 percent over the same month past year. The primary goods output is at 7.1 per cent in August, against 2.3 per cent in July, the capital goods output is at 5.4 per cent in August, against -1 per cent in July. The industry group "Manufacture of computer, electronic and optical products" showed the highest positive growth of 24.9 percent, followed by 16.5 per cent in "pharmaceuticals, medicinal chemical and botanical products" and 11.1 per cent in "other transport equipment".

The International Monetary Fund (IMF) on Tuesday also cut its growth forecast for the Indian economy by half a percentage point to 6.7 per cent for 2017-18, blaming the lingering disruptions caused by demonetisation of high value currencies a year ago and the rollout of the GST. In terms of industries, 10 out of 23 industry groups in the manufacturing sector have shown positive growth during August 2017.

The cumulative growth in these three sectors during April-August 2017 over the corresponding period of 2016 has been 3.3 percent, 1.6 percent and 6.2 percent respectively.

Some important items that have registered high negative growth include anti-malarial drug (-) 68.4%, jewellery of gold (-) 46.0%, plastic jars, bottles and containers (-) 42.0%, tooth paste (-) 39.9%, other tobacco products (-) 38.2%, electrical apparatus for switching or protecting electrical circuits (-) 33.7% and palm oil refined (-) 29.3%.

As food prices remained steady, the country's retail inflation also remained flat at 3.28% in September. Core inflation - which had spiked as much as 50 basis points sequentially in August, much to the concerns of policy-makers - stayed nearly flat at 4.5% in September.

The benchmark consumer-price index rose 3.28% from a year earlier, the same pace as in August.

Fuel and light inflation has seen increase of 5.56%.

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

Food prices climbed 1.25% from a year earlier, decelerating from a 1.52% rise in August.

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