IIP rises 5.2% in May; Retail inflation at 3-month high in June

According to data released by the Ministry of Statistics and Programme Implementation on Wednesday informed that the index of industrial production in India grew by 5.2% in May 2023 from 4.2% measured in April 2023. India's industrial production growth (IIP) declined to its lowest level in five months at 1.1% in March. However, the figure has been revised to 1.7%. The previous lowest growth rate was observed in October 2022 when it contracted by 4.1%.

The power generation sector which witnessed a decline of 1.1% in April saw a marginal growth of 0.9% in May 2023 year on year. Mining output increased by 6.4% in May from 5.1% in April.

As per Use-based classification, the indices stand at 149.8 for Primary Goods, 102.7 for Capital Goods, 154.1 for Intermediate Goods, and 174.7 for Infrastructure/ Construction Goods for May 2023. Further, the indices for Consumer durables and Consumer non-durables stand at 115.2 and 148.0 respectively for May 2023, the data added.

Meanwhile, retail inflation rose to a three-month high of 4.81% in June, mainly on account of higher foods inflation especially prices of cereals and pulses, though it remained within the 4+/- 2 percent band of Reserve Bank of India’s medium-term inflation target, data released by the National Statistical Office (NSO) on Wednesday said.

Retail inflation stood at 4.31% (revised upward from 4.25%) in May and 7% in June 2022. The previous high CPI was in March at 5.66%. Food inflation was recorded at 4.49% in June, higher than 2.96% in May. 

Source: Media reports