IIP growth slows to 1.7%, retail inflation rises to 2.57%

IIP growth slows to 1.7%, retail inflation rises to 2.57%

1. According to data released by Central Statistics Office (CSO), the retail inflation for the month of February has increased to 2.57% as against 2.05% in January.
2. Retail inflation is based on the Consumer Price Index (CPI). It reflects changes in the retail prices of specified goods and services over a time period which are traded by particular consumer group. There are four types of CPI: a) CPI-IW (Industrial Worker), b) CPI-UNME (Urban Non-Manual Employees), c) CPI-AL (Agricultural Labourers) and d) CPI-RL (Rural Labourers).
3. RBI has adopted CPI as the key measure for determining inflation situation of Indian economy, on recommendation of Urjit Patel Committee.
4. Index of Industrial Production (IIP) decreased to 1.7% in January 2019 compared to 2.4% in December 2018. IIP measures industrial output growth. IIP is a composite indicator that measures changes in the volume of production of a basket of industrial products.