CPI For July 2014 At 7.96%

The growth in Consumer Price Index (CPI) for the month of July 2014 stood at 7.96% as compared to 7.46% in June 2014. The increase in CPI was led by the increase in the prices of Food and Beverages, which increased by 9.16%. The major growth in the prices was visible in the prices of vegetables and fruits wherein the vegetable prices grew by 16.88% while that of fruits grew 22.48% in the same duration.

The inflation in fuel and light came in at 4.47% while that in clothing, bedding and footwear stood at 8.73%. These numbers will weigh on the market in tomorrow's trading session as these numbers have come below the street expectation.

The IIP data for the month of June 2014 has come in at 3.4% against 5% on month-on-month basis, which is much below the expected growth. The estimated growth for the June quarter was around 5.8%. The cumulative growth for the April-June 2014-2015 over the corresponding quarter of previous year stood at 3.9%. 

Meanwhile the growth in indices for the Industrial production for electricity stood at 15.7% against 11.3% in the corresponding period during April-June 2013-2014. The industry group 'electrical machinery' has shown highest positive growth at 6.29%, whereas the mining sector growth came in at 4.3% against 2.7% in May 2014. The manufacturing sector grew at 1.8% against 4.8% on month-on-month basis.