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Economy News
IIP rises only 1.2%, food inflation at 5-month high

The data on the Index of Industrial Production (IIP) and consumer price index (CPI)-based inflation, released on Tuesday, were more bad news for the Narendra Modi government, after growth of gross domestic product (GDP) crashed to its lowest in its tenure last week.The IIP data showed that economic activity was yet to pick up. Food items becoming more expensive and some services turning pricier because of the goods and services tax (GST) meant CPI-based inflation remained high.In July, the IIP grew by only 1.2 per cent over the same month last year, recovering slightly from a contraction of 0.1 per cent in June. The GST was rolled out on July 1; the fall in the IIP was because of pre-GST destocking. The July figures — lowest in 20 months, if June figures are excluded — showed industrial recovery was still a far cry.

News Source:- http://www.business-standard.com/article/economy-policy/iip-rises-only-1-2-food-inflation-at-5-month-high-117091300070_1.html