IIP, CPI data show steady growth: Finance Ministry

NEW DELHI: The finance ministry has said latest data for Index of Industrial Production (IIP) and Consumer Price Index ( CPI)-New Series points at steady improvement in the Indian economy. The August IIP growth has registered an increase of more than 6 % after 34 months, a ministry statement said late Tuesday.

“Cumulative IIP growth in the first five months in 2015-16 at 4.1%s better than the growth of 3 % in the same period last year,” it said adding that the manufacturing sector growth at 6.9 % in August has spearheaded industrial production. Double digit growth in capital goods (21.8 %) and consumer durables (17%) in August 2015, helped of course by a favourable base effect, imply improvement in investment and consumption demand, it said.

Industrial growth data is a reflection of recovery in the economy, predominantly led by domestic demand as the external sector environment continues to be sluggish, the statement said.

On inflation, the ministry said it continues to remain low. “Yearon-year inflation as reflected in all India CPI (combined) increased to 4.4 %n September 2015 from 3.7% in August 2015. However it is low compared to 5.6 % in September 2014,” it said.

Inflation based on Consumer Food Price Index (CFPI) in September 2015 (3.9 %) is lower than in September 2014 (6.2 %), the ministry pointed. “Inflation continues to be low as per the latest available CPI numbers,” it said.