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IIP shrinks
Why is it in the news?
- According to official data released, industrial activity contracted for the third consecutive month in October by 3.8%, driven by a fall in activity across sectors.
More in the news
- Retail inflation had surged to a 40-month high of 5.54% in November, driven by rising food inflation.
- The Index of Industrial Production (IIP) had contracted by 4.3% in September and 1.1% in August.
- The manufacturing sector contracted for the third consecutive month in October, by 2.1%, compared with a contraction of 3.9% in September.
- Stagflation:
(1) The combination of contraction in industrial activity and rising inflation has led experts to fear that India is entering a phase of stagflation.
(2) Stagflation is a situation in which there is persistent high inflation combined with stagnant or declining demand.
Source
The Hindu.