Industrial output jumped 19.6% in May

Tags: Economy/Finance

According to data released by the National Statistical Office, the Index of Industrial Production (IIP) has increased by 19.6 per cent in May this year, from 7.1 per cent in the previous month.

Important facts

• The manufacturing sector's output grew by 20.6% in May this year.

• In May 2022, mining output increased by 10.9% and electricity generation increased by 23.5%.

• Industrial production has been affected due to the Covid-19 pandemic since March 2020, when it stood at 18.7%.

• It shrank by 57.3% in April 2020 due to a decline in economic activity in the wake of the lockdown imposed to contain the spread of COVID-19.

• Industrial production had increased by 13% in August 2021.

• Thereafter, IIP growth remained below 4.4% (in September) and touched an all-time low of 1% in November as well as December 2021.

Retail inflation

• Meanwhile, retail inflation declined marginally to 7.01% in June, mainly due to a marginal moderation in food prices.

• The Consumer Price Index (CPI) based inflation stood at 7.04% in May and 6.26% in June last year.

• According to government data, inflation in the food basket stood at 7.75% in June 2022, up from 7.97% in the previous month.

• The central bank has been asked to ensure that inflation remains at 4% with a margin of 2% on either side.

Index of Industrial Production (IIP)

• It is an index that shows the growth rate in different industry groups of the economy over a given period.

• The index is calculated and published on a monthly basis by the Central Statistical Organization (CSO).

Industry groups which are classified under IIP

1. Broad sectors - Mining, Manufacturing and Electricity

2. Use-based sectors - Basic Goods, Capital Goods and Intermediate Goods