The country’s CPI data for the month of November and the IIP data for the month of October has recently been released. These numbers are important economic indicators that are used by policymakers to make effective economic policies for growth. Let’s take a closer look at the CPI (Consumer Price Index) data and the IIP (industrial output) data and understand what they mean.
As per the data released by the Consumer Price Index (CPI) which measures the retail inflation in the country, the rate of inflation in November dropped down to 5.88%, an 11-month low. The CPI for November is also down from the October figure of 6.77%. The CPI data reveals that retail inflation has come down to its lowest point since December 2021. The CPI has also finally fallen below the Reserve Bank of India’s upper limit of 6% for the first time in the year 2022. The government has asked the central bank to maintain the retail inflation at a level of around 4%, with a 2% flexible margin on either side, for a 5-year period which will end in March 2026. The CPI data is released by the central bank while they are preparing their bi-monthly monetary policy. In the ongoing financial year, the central bank has increased the repo rate by a total of 225 points in order to combat the rising inflation in the past year.
The country’s production or factory output is measured by the Central Statistical Organisation (CSO). As per the data released by the Ministry of Statistics and Programme Implementation, the IIP fell by around 4%. IIP contracted to 129.6 in the month of October from 133.5 in September. One year ago in October 2021, the IIP had risen by 4.2%. Overall, the industrial output of the ongoing financial year has risen by a total of 5.3%. As per the MoSPI, the fall in IIP was mainly caused due to manufacturing sector contracting by 5.6% in October. On a brighter note, the mining sector rose by 2.5% and the electricity sector also went up by 1.2%.
As for the Wholesale Price Index (WPI) data, it is scheduled to be released on December 14, at 12:00 pm.