IIP grew by 2.7 per cent in May Retail inflation jumped to 5.4 percent

India's Index of Industrial Production, the most important parameter to judge performance of industrial sector, grew by just 2.7% in May compared to 4.1% growth in April due to fall in growth of manufacturing sector.  Manufacturing sector output, which constitutes over 75% of the index, grew by 2.2% in May compared to 3.1% growth in April. For the April-May 2015 period, IIP growth stood at 3% compared to 4.6% growth in the first two months of last fiscal.

At the same time, India's Retail inflation, measured by Consumer Price Index, jumped to 5.4% in June compared to 5.01% in May. Consumer Inflation stood at 6.77% in June last year. The increase in consumer price inflation for June 2015 was mainly due to jump in food price inflation which came in at 5.48% from 4.80% in the previous month. Retail inflation in rural areas stood at 6.07% in June compared to 5.52% in May while retail inflation in urban areas stood at 4.55% in June compared to 4.41% in May.