May core sector growth slows to 2.3 % against 4.2% in April
1 July 2014 11:04 PM GMT
After showing some signs of recovery in April, growth in the output of eight core industries slowed to 2.3 per cent in May as against 5.9 per cent in the same month a year ago. Growth in the sector, which has a combined weight of about 38 per cent in the Index of Industrial Production (IIP), was 4.2 per cent in April. The segments that recorded negative growth last month were crude oil (-0.3 per cent), natural gas (-2.2 per cent), refinery products (-2.3 per cent) and steel (-2 per cent).
However, according to the data released by the Ministry of Commerce and Industry, the output of coal, fertilisers, cement and electricity went up by 5.5 per cent, 17.6 per cent, 8.7 per cent and 6.3 per cent, respectively. During April-May, growth in the eight core industries slowed to 3.3 per cent as against 4.9 per cent in the year-ago period.
Meanwhile, retail inflation for industrial workers remained almost flat at 7.02 per cent in May compared to 7.08 per cent in April mainly due to lower price of petrol. ‘The year-on-year inflation measured by monthly CPI-IW stood at 7.02 per cent for May as compared to 7.08 per cent for the previous month and 10.68 per cent during the corresponding month of the previous year,’ a Labour ministry statement said. It further stated that the largest upward pressure to the change in the current index came from food group contributing 1.65 percentage points to the total change.
At item level, rice, coconut oil, fish fresh, poultry, milk, onion, vegetables, fruits, electricity charges etc. are responsible for increase in the index. However, this upward pressure was restricted to some extent by petrol putting downward pressure on the index, it added. According to the data, the food inflation stood at 7.66 per cent in May against 7.76 per cent in the previous month and 13.24 per cent during the corresponding month in 2013.
The all India Consumer Price Index (CPI-IW) for May increased by two points and was pegged at 244 points. On one month percentage change, it increased by 0.83 per cent between April and May when compared with the rise of 0.88 per cent between the same two months a year ago.
However, according to the data released by the Ministry of Commerce and Industry, the output of coal, fertilisers, cement and electricity went up by 5.5 per cent, 17.6 per cent, 8.7 per cent and 6.3 per cent, respectively. During April-May, growth in the eight core industries slowed to 3.3 per cent as against 4.9 per cent in the year-ago period.
Meanwhile, retail inflation for industrial workers remained almost flat at 7.02 per cent in May compared to 7.08 per cent in April mainly due to lower price of petrol. ‘The year-on-year inflation measured by monthly CPI-IW stood at 7.02 per cent for May as compared to 7.08 per cent for the previous month and 10.68 per cent during the corresponding month of the previous year,’ a Labour ministry statement said. It further stated that the largest upward pressure to the change in the current index came from food group contributing 1.65 percentage points to the total change.
At item level, rice, coconut oil, fish fresh, poultry, milk, onion, vegetables, fruits, electricity charges etc. are responsible for increase in the index. However, this upward pressure was restricted to some extent by petrol putting downward pressure on the index, it added. According to the data, the food inflation stood at 7.66 per cent in May against 7.76 per cent in the previous month and 13.24 per cent during the corresponding month in 2013.
The all India Consumer Price Index (CPI-IW) for May increased by two points and was pegged at 244 points. On one month percentage change, it increased by 0.83 per cent between April and May when compared with the rise of 0.88 per cent between the same two months a year ago.
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