Index of Industrial Production growth dips to 3-month low of 4.3 per cent in August

The industrial production measured in terms of Index of Industrial Production (IIP) was 4.8 per cent in August last year, the CSO data released Friday showed. 

The mining sector production contracted by 0.4 per cent in August compared to a growth of 9.3 per cent in the year-ago month. Similarly, the capital goods output growth decelerated to 5 per cent during the month from a 7.3 per cent expansion year ago. 

The IIP growth is the lowest since May when industrial production grew at 3.9 per cent. Industrial production expanded by 6.8 per cent in June and 6.5 per cent in July. 

The manufacturing sector output grew at 4.6 pc in August compared to 3.8 pc a year ago. Power generation grew at the rate of 7.6 per cent in the month as against 8.3 per cent in the year-ago month. In terms of industries, 16 out of 23 industry groups in the manufacturing sector have shown positive growth during August 2018 as compared to the corresponding month of the previous year.

As per use-based classification, the growth rates in August 2018 over August 2017 are 2.6 per cent in primary goods, 2.4 per cent in intermediate goods and 7.8 percent in Infrastructure/ Construction Goods.  The consumer durables and consumer non-durables have recorded growth rates of 5.2 per cent and 6.3 per cent respectively.  Data shows the IIP growth in April-August was 5.2 pc, up from 2.3 pc in corresponding period in the previous fiscal.

Retail inflation up marginally to 3.77 pc in Sep: Retail inflation rose marginally to 3.77 per cent in September owing to higher fuel and food prices. The inflation based on consume price index (CPI) had declined to a 10-month low of 3.69 per cent in the previous month. In September 2017, it was at 3.28 per cent. However, the inflation rate has remained well within the RBI’s target of 4 per cent. In categories such as cereals, meat and fish, eggs, milk products, retail inflation showed an upward trend. In fruits, however, the inflation rate moderated in September. The overall inflation in consumer food basket increased to 0.51 per cent as against 0.29 per cent in August, showed the data. In fuel and light category, the rate of price rise was at 8.47 per cent in September.