IIP boost, Inflation eased

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The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of January 2018 were released on March 12by the Central Statistics Office of the Ministry of Statistics andProgramme Implementation. The Index of Industrial Production rose 7.5 percent in January, compared to the estimated 6.4 percent.

The General Index for the month of January 2018 stands at 132.3, which is 7.5 percent higher as compared to the level in the month of January 2017. The cumulative growth for the period April-January 2017-18 over the corresponding period of the previous year stands at 4.1 percent.

The Indices of Industrial Productionfor the Mining, Manufacturing and Electricity sectors for the month of January 2018 stand at114.5, 133.8 and 149.5 respectively, with the corresponding growth rates of 0.1 percent, 8.7 percent and 7.6 percent as compared to January 2017 (Statement I). The cumulative growth in these three sectors during April-January 2017-18 over the corresponding period of 2016-17 has been 2.5 percent, 4.3 percent and 5.3 percent respectively.

In terms of industries, sixteen out of the twenty three industry groups (asper 2-digit NIC-2008) in the manufacturing sector have shown positive growth during the month of January 2018 as compared to the corresponding month of the previous year (Statement II).The industry group ‘Manufacture of other transport equipment’ has shown the highest positive growth of 33.1 percent followed by 27.8 percent in ‘Manufacture of furniture’ and 26.6 percent in ‘Manufacture ofmotor vehicles, trailers and semi-trailers’.

Some important item groups showing high positive growth during the current month over the same month in previous year include ‘Bodies of trucks, lorries and trailers’ (267.5%), ‘Steroids and hormonal preparations (including anti-fungal preparations)’ (102.9%), ‘Stainless steel utensils’ (89.2%),‘Axle’ (58.8%), ‘Separators including decanter centrifuge’ (49.7%), ‘Sugar’ (40.9%), ‘Two-wheelers (motorcycles/ scooters)’ (37.7%), ‘Digestive enzymes and antacids (incl. PPI drugs)’ (31.7%), ‘Commercial Vehicles’ (29.8%), ‘Films of polythene, polyester, PVC & other forms of plastic’ (22.0%)and ‘Cement- all types’ (21.5%).

Indian economy got another boost as consumer inflation fell more than expected. CPI inflation in India stood at 4.4 percent in February slowing for the second straight month from a 17-month high, according to data released by the Central Statistics Officeon March 12.

India Inflation rates (on point to point basis i.e. current month over same month of last year, i.e., February 2018 over February 2017), based on General Indices and CFPIs are given as follows:

.                          All India Inflation rates (%) based on CPI (General) and CFPI

.Indices February 2018 (Prov.)                               January 2018 (Final)                                                 February 2017 (Final)

.                             Rural   Urban     Combd.    Rural     Urban    Combd.     Rural    Urban    Combd.

..CPI (General)   4.37     4.52         4.44           5.21      4.93         5.07           3.67       3.55         3.65

..CFPI                  3.62      2.45        3.26             5.05     4.06     4.70              2.08      1.87          2.01