May IIP contracts by 1.6%; CPI inflation rises to 9.87%

Growth in industrial production (IIP) for the month of May fell to minus-1.6 percent versus 1.9 percent for the previous month. A CNBC-TV18 poll had estimated industrial growth at 1.5 percent.

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The IIP for April has been revised to 1.9 percent versus 2.3 percent earlier. Industrial growth data also revealed that growth in the manufacturing sector fell at minus-2 percent versus 2.8 percent in the previous month; the power sector grew at 6.2 percent as against 0.7 percent in the previous month; the mining sector fell to minus-5.7 percent as against minus-3 percent (MoM).

The growth of basic goods came in at minus-0.4 percent versus 1. percent (MoM); growth in the capital goods sector fell to minus-2.7 percent as against 1 percent in the previous month;  the intermediate goods sector fell to 1.5 percent as against 2.4 percent (MoM);  growth in the consumer goods sector fell to minus-4 percent as against 2.8 percent (MoM);  consumer durables fell to minus-10.4 percent versus minus-8.3 percent (MoM).

The government also released Consumer Price Index (CPI) inflation data which showed that the June CPI food inflation was 11.84 percent, CPI Inflation at 9.87 percent versus 9.31 percent (M-o-M), CPI inflation in urban areas at 10.13 pecent as against 9.65 percent (MoM and CPI Inflation in the rural areas at 9.63 percent versus 8.98 percent (MoM).