TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    Bengal Chief Minister Targeted in Alleged JeM Plot

    Bengal Chief Minister Targeted in Alleged JeM Plot

    PoK Protests Intensify as Pakistan Faces Scrutiny Over Media Curbs

    PoK Protests Intensify as Pakistan Faces Scrutiny Over Media Curbs

    Commonwealth Games 2026: India’s Campaign Beyond Medals

    Commonwealth Games 2026: India’s Campaign Beyond Medals

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How to Start Trading Forex and Crypto in India: A Beginner’s Roadmap

    How to Start Trading Forex and Crypto in India: A Beginner’s Roadmap

    Small-Ticket EMIs Are Turning Into India’s New Credit Habit

    Small-Ticket EMIs Are Turning Into India’s New Credit Habit

    Borrowing in the US and India: Their Economic Effects

    Borrowing in the US and India: Their Economic Effects

    ULIP Fund Switching Explained: When, Why, and How to Boost Returns

    ULIP Fund Switching Explained: When, Why, and How to Boost Returns

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    INS Nipun, India's second indigenous Diving Support Vessel built by Hindustan Shipyard Limited for the Indian Navy.

    Here’s What Nipun’s Delivery Actually Tells Us About Aatmanirbhar Bharat

    Flags of India and Pakistan with the United Nations emblem, representing the Kashmir dispute and UN resolutions on plebiscite and troop withdrawal.

    Selective Invocation: Pakistan’s Plebiscite-Only Narrative

    From Shipbuilder to Maritime Capability Partner: Navy Outlines Bigger Vision for Defence PSU HSL With Dy Chief of Navy’s visit

    From Shipbuilder to Maritime Capability Partner: Navy Outlines Bigger Vision for Defence PSU HSL With Dy Chief of Navy’s visit

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Modi-Takaichi Summit Signals India-Japan’s Strategic Pivot Towards a Stronger Indo-Pacific Alliance

    Modi-Takaichi Summit Signals India-Japan’s Strategic Pivot Towards a Stronger Indo-Pacific Alliance

    PoK Leadership Explodes at Islamabad as Khawaja Asif’s Kashmir Remark Sparks Rare Public Break and Identity Showdown

    PoK Leadership Explodes at Islamabad as Khawaja Asif’s Kashmir Remark Sparks Rare Public Break and Identity Showdown

    Canada’s Khalistan Blowback: After 41 Years, Ottawa Finally Admits Canada-Based Khalistani Extremists Blew Up Air India’s Kanishka

    Canada’s Khalistan Blowback: After 41 Years, Ottawa Finally Admits Canada-Based Khalistani Extremists Blew Up Air India’s Kanishka

    From Cells To Networks: NIA Maps Affiliate Terror Structure In JMB–IMK Case, Chargesheets 11 Linked To Northeast Bengal Module

    From Cells To Networks: NIA Maps Affiliate Terror Structure In JMB–IMK Case, Chargesheets 11 Linked To Northeast Bengal Module

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Flags of India and Pakistan with the United Nations emblem, representing the Kashmir dispute and UN resolutions on plebiscite and troop withdrawal.

    Selective Invocation: Pakistan’s Plebiscite-Only Narrative

    Why Choose an MBA After B.Com? Here’s the Case

    Why Choose an MBA After B.Com? Here’s the Case

    Shankaracharya, Dharma, and Politics: The Avimukteshwaranand Question

    Can a Shankaracharya Be Political? The Avimukteshwaranand Debate Through the Lens of Dharma

    ‘Not Refugees, But Warriors’: Mohan Bhagwat Seeks to Redefine the Legacy of Partition Migrants

    ‘Not Refugees, But Warriors’: Mohan Bhagwat Seeks to Redefine the Legacy of Partition Migrants

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    The Importance of Personalised Care in IVF Treatment

    The Importance of Personalised Care in IVF Treatment

    Surat to Delhi Flight vs Train: Which One Makes More Sense?

    Surat to Delhi Flight vs Train: Which One Makes More Sense?

    Why Gen Z Travellers Are Choosing Hostels in Rishikesh Over Hotels

    Why Gen Z Travellers Are Choosing Hostels in Rishikesh Over Hotels

    How RajBet’s VIP Program Actually Works

    How RajBet’s VIP Program Actually Works

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    Bengal Chief Minister Targeted in Alleged JeM Plot

    Bengal Chief Minister Targeted in Alleged JeM Plot

    PoK Protests Intensify as Pakistan Faces Scrutiny Over Media Curbs

    PoK Protests Intensify as Pakistan Faces Scrutiny Over Media Curbs

    Commonwealth Games 2026: India’s Campaign Beyond Medals

    Commonwealth Games 2026: India’s Campaign Beyond Medals

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How to Start Trading Forex and Crypto in India: A Beginner’s Roadmap

    How to Start Trading Forex and Crypto in India: A Beginner’s Roadmap

    Small-Ticket EMIs Are Turning Into India’s New Credit Habit

    Small-Ticket EMIs Are Turning Into India’s New Credit Habit

    Borrowing in the US and India: Their Economic Effects

    Borrowing in the US and India: Their Economic Effects

    ULIP Fund Switching Explained: When, Why, and How to Boost Returns

    ULIP Fund Switching Explained: When, Why, and How to Boost Returns

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    Army Chief General Dhiraj Seth Reviews Central Command’s Combat Readiness, Pushes for Future-Ready Force

    INS Nipun, India's second indigenous Diving Support Vessel built by Hindustan Shipyard Limited for the Indian Navy.

    Here’s What Nipun’s Delivery Actually Tells Us About Aatmanirbhar Bharat

    Flags of India and Pakistan with the United Nations emblem, representing the Kashmir dispute and UN resolutions on plebiscite and troop withdrawal.

    Selective Invocation: Pakistan’s Plebiscite-Only Narrative

    From Shipbuilder to Maritime Capability Partner: Navy Outlines Bigger Vision for Defence PSU HSL With Dy Chief of Navy’s visit

    From Shipbuilder to Maritime Capability Partner: Navy Outlines Bigger Vision for Defence PSU HSL With Dy Chief of Navy’s visit

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    Modi-Takaichi Summit Signals India-Japan’s Strategic Pivot Towards a Stronger Indo-Pacific Alliance

    Modi-Takaichi Summit Signals India-Japan’s Strategic Pivot Towards a Stronger Indo-Pacific Alliance

    PoK Leadership Explodes at Islamabad as Khawaja Asif’s Kashmir Remark Sparks Rare Public Break and Identity Showdown

    PoK Leadership Explodes at Islamabad as Khawaja Asif’s Kashmir Remark Sparks Rare Public Break and Identity Showdown

    Canada’s Khalistan Blowback: After 41 Years, Ottawa Finally Admits Canada-Based Khalistani Extremists Blew Up Air India’s Kanishka

    Canada’s Khalistan Blowback: After 41 Years, Ottawa Finally Admits Canada-Based Khalistani Extremists Blew Up Air India’s Kanishka

    From Cells To Networks: NIA Maps Affiliate Terror Structure In JMB–IMK Case, Chargesheets 11 Linked To Northeast Bengal Module

    From Cells To Networks: NIA Maps Affiliate Terror Structure In JMB–IMK Case, Chargesheets 11 Linked To Northeast Bengal Module

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Flags of India and Pakistan with the United Nations emblem, representing the Kashmir dispute and UN resolutions on plebiscite and troop withdrawal.

    Selective Invocation: Pakistan’s Plebiscite-Only Narrative

    Why Choose an MBA After B.Com? Here’s the Case

    Why Choose an MBA After B.Com? Here’s the Case

    Shankaracharya, Dharma, and Politics: The Avimukteshwaranand Question

    Can a Shankaracharya Be Political? The Avimukteshwaranand Debate Through the Lens of Dharma

    ‘Not Refugees, But Warriors’: Mohan Bhagwat Seeks to Redefine the Legacy of Partition Migrants

    ‘Not Refugees, But Warriors’: Mohan Bhagwat Seeks to Redefine the Legacy of Partition Migrants

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    The Importance of Personalised Care in IVF Treatment

    The Importance of Personalised Care in IVF Treatment

    Surat to Delhi Flight vs Train: Which One Makes More Sense?

    Surat to Delhi Flight vs Train: Which One Makes More Sense?

    Why Gen Z Travellers Are Choosing Hostels in Rishikesh Over Hotels

    Why Gen Z Travellers Are Choosing Hostels in Rishikesh Over Hotels

    How RajBet’s VIP Program Actually Works

    How RajBet’s VIP Program Actually Works

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
No Result
View All Result
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
  • Economy
  • Defense
  • Geopolitics
  • Knowledge
  • Law
  • Lounge

Inflation cools, IIP Contracts, Hopes high for interest rate cut

Vivek by Vivek
14 September 2016
in Economy
CPI IIP

CPI inflation rate eased at 5.05% in August after surging for four-straight months, on the back of better consumer food price index.

Share on FacebookShare on X

The IIP or the Index of Industrial Production (IIP) is an index for India which shows growth or trend of various sectors in an economy such as mining, electricity and manufacturing. The IIP Index is like a pre-cursor to assessing GDP growth or how the industries are performing on a month to month basis. It is compiled and published monthly by the Central Statistical Organization (CSO) six weeks after the reference month ends.

The IIP value represents the represents the status of production in the industrial sector. The base year was at one time fixed at 1993–94 so that year was assigned an index level of 100. The current base year is 2004–2005. The Eight Core Industries comprising ~38 % of the weight of items include Electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers. Thus, performance of these industries are key to understanding overall growth. The IIP index thus shows the performance of Economy.

RelatedPosts

Donald Trump Hits India With Fresh Tariffs

India Refuses to Settle for Less as Landmark US Trade Deal Awaits Final Competitive Guarantee

Modi-Takaichi Summit Signals India-Japan’s Strategic Pivot Towards a Stronger Indo-Pacific Alliance

Load More

Second important indicator is CPI or Consumer Price Index is a Retail inflation indicator. It measures what is the degree of inflation directly impacting the end-consumer vis-a-vis WPI or Wholesale Price Index which impacts companies. These two measures are keenly watched by both Policy makers and Central banks for policy and interest rate decisons.

India’s macro-economic indicators painted a mixed picture as retail inflation decelerated sharply to a five-month low in August after breaching the central bank’s tolerance level of 6% in the previous month, thus opening a window for policy rate cut later this year while factory output shrank in July.

The Consumer Price Index (CPI) declined to 5.05% in August from 6.07% in July as food prices stabilized. The CPI number is well below consensus economist estimates of 5.5%. and sharply below the RBI tolerance level of 6%; creating hopes for rate cut in the month of Oct 2016.

One more healthy data point coming from Ministry of Agriculture is that 105.4 mn ha is already been sown under multiple Kharif crops till date, resulting in a 4.16% y-o-y increase in the area sown. Further, the pulses sowing (having a high retail inflation sensitivity) is up 30% y-o-y to 14.4 mn ha. This information coupled with better monsoons, is expected to lead to better crops & control in food inflation. All these factors combined can lead to the economy moving to the 5% CPI target for Mar 2017 or probably lower in the months to come.

IIP Contracts due to base effect

The General Index for Industrial Production (IIP) has contracted by 2.4% y-o-y for the month of July 2016. Further, for the period from Apr to Jul 2016, the IIP has contracted by 0.2%.

The sector-wise contribution to the IIP decline is driven by:

CPI IIP

CPI IIP

This fall in IIP has seasonality; in fact, there is base effect in play. The following chart shows the IIP index trend since Apr 2009. Look at the Maroon Color Box and trend. Generally, from Apr to Sep, the Index is in a similar range. This range continuous for a year or two. In fact, between Apr to Sep 2009 the index moved sharply to higher side in Apr to Sep 2010. This was followed by similar increase in Apr to Sep 2011. However, the index then stabilized and remained in this range from Apr to Sep 2014. After nearly four years, in Apr to Sep 2015 there was uptick in the index move.

CPI IIP

Brownie points for the Government shall be their ability to keep the index stable here in the wake of global uncertainty / or ensure there is increase in the overall index in the ensuing months.

If we look at the index, there are cracks in the manufacturing sector which is taking time to heal.

CPI IIP

The movement as shown in the above chart is primarily stable; but the key is getting that increase. So, I would not worry on the 2.4% contraction, yet.

However, one item that remains worrying is the capital goods sector. This index is seeing monthly decline and there is need to arrest the bleeding here.CPI IIP

The Government needs to step up on the Public Capital Expenditure which shall be key in reviving the Capital Goods sector. Further, on the back of better rains, increasing sowing and easing inflation, RBI should consider a rate cut of at least 50 BPS to ease liquidity constraints. Many analysts & economists have echoed in for a rate cut. We believe we may see a 50 BPS rate cut in the month of OCT 2016.

Source:

http://mospi.nic.in/Mospi_New/upload/iip_12sep16.pdf

http://mospi.nic.in/Mospi_New/upload/cpi_pr_12sept16m.pdf

http://www.livemint.com/Politics/KYemQAxuWYdUB2n06ixcoI/Food-inflation-falls-to-5month-low-but-factory-output-shri.html

http://www.indiainfoline.com/article/news-top-story/india-s-iip-contracts-2-4-in-july-iip-116091200280_1.html

Save

Tags: Consumer Price IndexEconomyIndiaIndustrial Production
ShareTweetSend
Previous Post

How subsidies made Venezuela a beggar nation?

Next Post

केजरीवाल जी, आपके स्वास्थ्य मंत्री झूठ बोल रहे हैं

Related Posts

How to Start Trading Forex and Crypto in India: A Beginner’s Roadmap
Finance

How to Start Trading Forex and Crypto in India: A Beginner’s Roadmap

3 August 2026

India has produced millions of retail traders over the past decade, drawn by rising internet access, growing financial literacy,...

Small-Ticket EMIs Are Turning Into India’s New Credit Habit
Finance

Small-Ticket EMIs Are Turning Into India’s New Credit Habit

2 August 2026

A phone case, a festival outfit, a two-month gym pass. None of these used to need financing. Now a...

Borrowing in the US and India: Their Economic Effects
Finance

Borrowing in the US and India: Their Economic Effects

21 July 2026

Borrowing takes different shapes all over the world, depending on local economies and the habits of the people who...

Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Currently Playing

INS NIPUN: MEET INDIA’S NEW DSV

INS NIPUN: MEET INDIA’S NEW DSV

00:03:05

POJK ERUPTS IN PROTEST

00:02:53

The Indian Air Force Mission That Broke Pakistan's Backbone at Tiger Hill | Op Safed Sagar

00:58:34

Pakistan’s Plebiscite Claim: The Missing Context of the UN Framework

00:03:23

TRUMP'S PHARMA TARIFF SHOCK

00:03:54
Facebook Twitter Instagram Youtube
tfipostTfipost.com
Right Wing | News Analysis | Indian Opinion
  • About us
  • Contact Us
  • Careers
  • Brand Partnerships
  • Terms of use
  • Privacy Policy
  • Sitemap

©2026 TFI Media Private Limited

No Result
View All Result
  • Premium
  • Politics
    • Analysis
    • Opinions
    • Trending
  • Economy
    • Business
    • Finance
  • Defense
    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
TFIPOST हिन्दी
TFIPOST Global

©2026 TFI Media Private Limited