TFIPOST हिन्दी
TFIPOST Global
Tfipost.com
Tfipost.com
No Result
View All Result
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Is Quick Commerce Sacrificing Food Safety for Speed? Viral Complaint Sparks Fresh Concerns

    Is Quick Commerce Sacrificing Food Safety for Speed? Viral Complaint Sparks Fresh Concerns

    Nihang Sikhs Breach Uttarakhand Border Security, Advance Towards Hemkund Sahib Amid Arrest Demand Standoff

    Nihang Sikhs Breach Uttarakhand Border Security, Advance Towards Hemkund Sahib Amid Arrest Demand Standoff

    Jaipur Woman Arrested Over Pakistan Travel Plot to Marry JeM Commander, Probe Flags Online Radicalisation

    Jaipur Woman Arrested Over Pakistan Travel Plot to Marry JeM Commander, Probe Flags Online Radicalisation

    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How Insurers Calculate IDV for Discontinued Car Models

    How Insurers Calculate IDV for Discontinued Car Models

    Best credit cards with airport lounge access for frequent travellers

    Best credit cards with airport lounge access for frequent travellers

    The Health Insurance Features You Notice Only When the Hospital Bill Arrives

    The Health Insurance Features You Notice Only When the Hospital Bill Arrives

    How to Choose the Best Comprehensive Car Insurance Policy for Your Car

    How to Choose the Best Comprehensive Car Insurance Policy for Your Car

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    India Officially Names Six Operation Sindoor Martyrs as Their Sacrifice Enters National War Memorial Record

    India Officially Names Six Operation Sindoor Martyrs as Their Sacrifice Enters National War Memorial Record

    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

    Pakistan’s Rafale Claim Takes a Hit as IAF Document Reaffirms Full 36-Aircraft Fleet

    Pakistan’s Rafale Claim Takes a Hit as IAF Document Reaffirms Full 36-Aircraft Fleet

    Drone, Dark Web and a Border Bust: Inside Punjab’s High-Stakes Arms Interception Near Amritsar

    Drone, Dark Web and a Border Bust: Inside Punjab’s High-Stakes Arms Interception Near Amritsar

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    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

    Beyond the Propaganda Frame: Gilgit-Baltistan’s Unfinished Struggle for Rights, Representation and Political Balance

    Beyond the Propaganda Frame: Gilgit-Baltistan’s Unfinished Struggle for Rights, Representation and Political Balance

    Five Billion Dollars, Unknown Terms: Pakistan Has Never Told Its Citizens What the Hangor Submarines Actually Cost

    Five Billion Dollars, Unknown Terms: Pakistan Has Never Told Its Citizens What the Hangor Submarines Actually Cost

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    7 Common GMAT Mistakes That Can Hurt Your ISB MBA Application

    7 Common GMAT Mistakes That Can Hurt Your ISB MBA Application

    From Doklam to Siliguri: Why the 2017 Standoff Became a Major Strategic Wake-Up Call for India

    From Doklam to Siliguri: Why the 2017 Standoff Became a Major Strategic Wake-Up Call for India

    ₹10 Lakh Paper Leak Trap: How Telegram Fraudsters Built a NEET Scam Ecosystem

    ₹10 Lakh Paper Leak Trap: How Telegram Fraudsters Built a NEET Scam Ecosystem

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    India Overhauls Telecom Rules: Data Localisation Tightened, Satellite Operators Face Stringent New Conditions

    India Overhauls Telecom Rules: Data Localisation Tightened, Satellite Operators Face Stringent New Conditions

    Understanding the Hair Growth Cycle for Better Results

    Understanding the Hair Growth Cycle for Better Results

    Should Gym Clothes Be Tight or Loose?

    Should Gym Clothes Be Tight or Loose?

    What Companies Should Check before Sending Employees Abroad

    What Companies Should Check before Sending Employees Abroad

    • Books
    • Cinema
    • Food
    • Health
    • Sports
    • technology
    • Travel
    • Satire
Tfipost.com
  • Premium
  • Politics
    • All
    • Analysis
    • Opinions
    • Trending
    Is Quick Commerce Sacrificing Food Safety for Speed? Viral Complaint Sparks Fresh Concerns

    Is Quick Commerce Sacrificing Food Safety for Speed? Viral Complaint Sparks Fresh Concerns

    Nihang Sikhs Breach Uttarakhand Border Security, Advance Towards Hemkund Sahib Amid Arrest Demand Standoff

    Nihang Sikhs Breach Uttarakhand Border Security, Advance Towards Hemkund Sahib Amid Arrest Demand Standoff

    Jaipur Woman Arrested Over Pakistan Travel Plot to Marry JeM Commander, Probe Flags Online Radicalisation

    Jaipur Woman Arrested Over Pakistan Travel Plot to Marry JeM Commander, Probe Flags Online Radicalisation

    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    • Analysis
    • Opinions
    • Trending
  • Economy
    • All
    • Business
    • Economy1
    • Finance
    How Insurers Calculate IDV for Discontinued Car Models

    How Insurers Calculate IDV for Discontinued Car Models

    Best credit cards with airport lounge access for frequent travellers

    Best credit cards with airport lounge access for frequent travellers

    The Health Insurance Features You Notice Only When the Hospital Bill Arrives

    The Health Insurance Features You Notice Only When the Hospital Bill Arrives

    How to Choose the Best Comprehensive Car Insurance Policy for Your Car

    How to Choose the Best Comprehensive Car Insurance Policy for Your Car

    • Business
    • Finance
  • Defense
    • All
    • Defence
    • Strategy
    • Weaponry
    India Officially Names Six Operation Sindoor Martyrs as Their Sacrifice Enters National War Memorial Record

    India Officially Names Six Operation Sindoor Martyrs as Their Sacrifice Enters National War Memorial Record

    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

    Pakistan’s Rafale Claim Takes a Hit as IAF Document Reaffirms Full 36-Aircraft Fleet

    Pakistan’s Rafale Claim Takes a Hit as IAF Document Reaffirms Full 36-Aircraft Fleet

    Drone, Dark Web and a Border Bust: Inside Punjab’s High-Stakes Arms Interception Near Amritsar

    Drone, Dark Web and a Border Bust: Inside Punjab’s High-Stakes Arms Interception Near Amritsar

    • Defence
    • Strategy
    • Weaponry
  • Geopolitics
    • All
    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
    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

    Beyond the Propaganda Frame: Gilgit-Baltistan’s Unfinished Struggle for Rights, Representation and Political Balance

    Beyond the Propaganda Frame: Gilgit-Baltistan’s Unfinished Struggle for Rights, Representation and Political Balance

    Five Billion Dollars, Unknown Terms: Pakistan Has Never Told Its Citizens What the Hangor Submarines Actually Cost

    Five Billion Dollars, Unknown Terms: Pakistan Has Never Told Its Citizens What the Hangor Submarines Actually Cost

    • Africa
    • Americas
    • Asia Pacific
    • Europe
    • South Asia
    • West Asia
  • Knowledge
    • All
    • Culture
    • Education
    • History
    • Indology
    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    Samvidhan Hatya Diwas: The Emergency That Put India’s Democracy Under Suspension and Still Divides Memory

    7 Common GMAT Mistakes That Can Hurt Your ISB MBA Application

    7 Common GMAT Mistakes That Can Hurt Your ISB MBA Application

    From Doklam to Siliguri: Why the 2017 Standoff Became a Major Strategic Wake-Up Call for India

    From Doklam to Siliguri: Why the 2017 Standoff Became a Major Strategic Wake-Up Call for India

    ₹10 Lakh Paper Leak Trap: How Telegram Fraudsters Built a NEET Scam Ecosystem

    ₹10 Lakh Paper Leak Trap: How Telegram Fraudsters Built a NEET Scam Ecosystem

    • Culture
    • History
    • Indology
  • Law
  • Lounge
    • All
    • Books
    • Cinema
    • Entertainment
    • Food
    • Games
    • Health
    • Lifestyle
    • Satire
    • Sports
    • technology
    • Travel
    India Overhauls Telecom Rules: Data Localisation Tightened, Satellite Operators Face Stringent New Conditions

    India Overhauls Telecom Rules: Data Localisation Tightened, Satellite Operators Face Stringent New Conditions

    Understanding the Hair Growth Cycle for Better Results

    Understanding the Hair Growth Cycle for Better Results

    Should Gym Clothes Be Tight or Loose?

    Should Gym Clothes Be Tight or Loose?

    What Companies Should Check before Sending Employees Abroad

    What Companies Should Check before Sending Employees Abroad

    • 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

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

Ram Mandir Donation Probe: FIR Names Eight Amid Systemic Lapses in Handling Temple Offerings

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 Insurers Calculate IDV for Discontinued Car Models
Finance

How Insurers Calculate IDV for Discontinued Car Models

24 June 2026

A discontinued car model may no longer be available in showrooms, but it can still carry a fair market...

Best credit cards with airport lounge access for frequent travellers
Finance

Best credit cards with airport lounge access for frequent travellers

22 June 2026

For frequent travellers, longer layovers and early check-in windows make airport comfort a practical concern. A credit card with...

The Health Insurance Features You Notice Only When the Hospital Bill Arrives
Finance

The Health Insurance Features You Notice Only When the Hospital Bill Arrives

19 June 2026

Understanding policy details before treatment begins can make health-related expenses easier to review later. A hospital bill may include...

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

Nepal's Natural Ally: Why India, Not China ? Indo-Nepal

Nepal's Natural Ally: Why India, Not China ? Indo-Nepal

00:04:05

Pakistan’s Investment Rescue Plan or Another Economic Promise? Munir | Sharif

00:03:41

Gilgit Baltistan's Youth Rising: The Fight for Dignity, Rights and Self Governance

00:03:08

Doklam’s Legacy: How the 2017 Standoff Reshaped Himalayan Security and Border Tensions। Indo china

00:03:11

Inside the Doklam Face-Off: How India Backed Bhutan and Held the Line During the 73 Day Standoff

00:03:11
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