May IIP data surprises while inflation edges up

The May Index of Industrial Production (IIP) stands at 1.2 per cent against -0.8 per cent in April. Meanwhile, IIP for May 2015 was at 2.5 per cent. The Consumer Durables output was at 6 per cent in May against 11.1 per cent in April. The output from consumer non-durable stands at -2.2 per cent while -9.7 per cent in April.

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of May 2016 stand at 129.5, 188.6 and 204.2 respectively, with the corresponding growth rates of 1.3 per cent, 0.7 per cent and 4.7 per cent as compared to May 2015. The cumulative growth in these three sectors during April-May 2016 over the corresponding period of 2015 has been 1.2 per cent, (-) 1.5 per cent and 9.4 per cent respectively. In terms of industries, 14 out of the 22 industry groups in the manufacturing sector have shown positive growth during the month of May 2016 on a yearly basis.

The core inflation is slightly up and stands at 5.77 per cent in June against 5.76 per cent in May. The food inflation stands  at 7.79 in June while 7.55 per cent in May. The rural inflation has declined and has remained at 6.2 per cent vs 6.45 per cent in May. The urban inflation stands at 5.26 per cent in June while 4.89 per cent in May.