IIP & CPI

Index of Industrial Production (IIP) details out the growth of various sectors in an economy such as mineral mining, electricity and manufacturing.
It is compiled and published every month by the Ministry of Statistics and Programme Implementation.
The current base year is 2011-2012.
The Eight Core Industries (Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity) comprise 40.27 per cent of the weight of items included in the IIP.

It is an index which measures the weighted average of prices of a basket of consumer goods and services such as transportation, food and medical care.
It is calculated by measuring price changes for each item in the predetermined basket of goods and services and averaging them.
It is released by the Ministry of Statistics and Program Implementation.
The base year used to calculate CPI in India is 2011-2012.
Under the flexible inflation targeting (FIT) framework, the RBI aims to contain CPI based inflation within 4 percent with a band of (+/-) 2 percent.

India’s industrial output fell for the sixth month in a row this August.
The index of industrial production (IIP) shrank 8% in August on a year-on-year basis, marking a marginally improvement compared with July when output contracted 10.8% as per revised estimates.
August’s output marks the lowest contraction since factory production began falling in March. Output had shrunk 18.7% in March, followed by contractions of 57.3% in April and 33.4% in May. Between April and August, industrial output had shrunk 25%.

As per the latest data, Consumer Price Inflation increased to 7.34% in September, with food price spikes reaching 10.68%.

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