CPI has cooled in Dec; while IIP in Nov is at One Year High

Categories: Blog
January 12, 2017Posted By Admin

CPI recorded at 3.41%
India’s Consumer Price inflation (CPI) for December 2016 came in at 3.41%, down from previous month’s 3.63%. inflation levels in Rural and Urban India have come in at 3.83% and 2.90% in December 2016, both down from last month’s at 4.13% and 3.13% respectively. Food and Beverages product group inflation came in at 1.98% as compared to 2.56% previous month. In this sub-group, a massive decline was seen in Vegetables to negative territory at -14.59%. Pulses stood at -1.57% and Sugar /Confectionary products, on the other hand, recorded 21.06%. Pan, Tobacco and Intoxicants group inflation came in at 6.39%; Clothing & Footwear and Housing group inflation stood at 4.88% and 4.98% respectively; Fuel & Light group inflation stood at 3.77% as compared to 2.80% the previous month. Miscellaneous product group inflation came in a little lower at 4.73% as compared to 4.83% in the previous month.
Indian IIP grows at 5.7% despite demonetisation
India’s Index of Industrial Production (IIP) for November 2016 recorded a growth of 5.7% as compared to the previous year. The cumulative growth stands at 0.4% for the April-November period in 2016, on a YoY basis. The growth rates for Mining, Manufacturing and Electricity came in as follows for November 2016 which stands at 3.9%, 5.5% and 8.9% respectively. Among the industries, 16 out of the 22 industry groups in the manufacturing sector had seen positive growth. Highest positive growth was reported in ‘Radio TV and Communications equipment and apparatus’ 32.2%, while highest negative growth was seen in ‘Furniture manufacturing’ at -16.5%. As per Use-based calculations, growth rates of basic goods, intermediary goods, capital goods and consumer goods came in at 4.7%, 15.0% and 2.7% respectively. Consumer goods growth rate came in at 5.6%; the group consists of Consumer durables which grew by 9.8% and Consumer non-durables that grew by 2.9%. ‘Cable, Rubber insulated’ showed highest negative growth in November 2016 at -185.0%.