The government on Friday launched the updated series of data for the Index of Industrial Production (IIP) and Wholesale Price Index (WPI)-based inflation, which registered healthier factory output and lower price pressures.

“The new IIP has an updated item basket, more reporting entities and a wider coverage,” said TCA Anant, Secretary, Ministry of Statistics and Programme Implementation. According to the new series of IIP, with a base year of 2011-12, factory output grew by 2.7 per cent in March, led by healthy growth in mining and electricity sector.

But measured by the old series, factory output was lower at 2.5 per cent in March and had contracted by 1.2 per cent in February. Likewise, the IIP annual growth in 2016-17 under the new series is 5 per cent against 0.7 per cent under the old series.

Despite a sharp rise in fuel prices, WPI inflation under the new series eased to 3.85 per cent in April from 5.3 per cent in March. Similarly, Consumer Price Index (CPI)-based inflation eased to 2.99 per cent in April, from 3.89 per cent in March, due to lower cost of food items.

The two updated indices are based on reports of expert committees led by former Planning Commission Member Saumitra Chaudhuri. “The new WPI is closer to the concept of a Producers Price Index: it has excluded indirect taxes from the wholesale price,” said Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion (DIPP). CII Director-General Chandrajit Banerjee said the new data “is reflective of market realities.”

With the data painting a healthier picture, analysts see the RBI holding rates in June.

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