New IIP series excludes calculators, gutka, TV picture tubes

Retail Inflation Decelerates To 2.99% As Food Prices Plunge

Retail Inflation Decelerates To 2.99% As Food Prices Plunge

THE government on Friday released Index of Industrial Production (IIP) and Wholesale Price Index (WPI) series with base year of 2011-2012, replacing 2004-05 used till now. The index basket of the new series has a total of 697 items, including 117 for primary articles, 16 for fuel and power and 564 for manufactured products.

According to data furnished by the Ministry of Statistics and Programme Implementation, last month's retail inflation rate, based on the Consumer Price Index (CPI), was lower from 5.47 per cent recorded during April past year.

As per the new series, April WPI inflation stood at 3.85 percent and March IIP at 2.7 percent.

Consumer prices rose by an annual 2.99 per cent, compared with March's 3.89 per cent, data released by the Ministry of Statistics showed on Friday (May 13). "The work on the next revision should start right away", he said.

Manufacturing output grew 1.2% on an year on year basis and electricity production grew 6.2% while mining rose 9.7% as against March of last year. It has 407 item groups, as against 399 in old series.

The coverage of the new series of IIP is limited to the organised sector only.

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Further, it added that the number of source agencies reporting data for compilation of IIP in the new series will be 14 as compared to 15 earlier.

Food price inflation stood at 0.61 per cent in April 2017 against 2.01 per cent in March and 6.40 per cent in April past year.

For WPI calculation, 199 new items were added and 146 items (like video CD player, khandsari and light diesel oil among others) were dropped.

"There will be some impact on retail and wholesale inflation numbers, post rollout of the goods and services tax", said Statistics Secretary T C A Anant. Inflation in manufactured products was steady at 3%.

The base year reset is expected to bring in more accuracy in measuring the level of economic activity as well the national income. The committee will meet at least once a year for identifying new items that need to be included in the item basket and removing those that have lost their relevance or are no longer being produced. Ideally, they should move in the same range, as value addition at constant prices could address the price factors and broadly reflect physical growth.