Consumer Price Index (CPI) and Index of Industrial Production (IIP)

Consumer Price Index or CPI is the measure of changes in the price level of a basket of consumer goods and services bought by households. CPI is a numerical estimation calculated using the rates of a sample of representative objects the prices of which are gathered periodically.

The Index of Industrial Production or IIP is an Indian index which talks about the growth of the different sectors in the economy like electricity, mining, and manufacturing. It is a composite indicator which calculates the short-term changes in the production volume of a basket of industrial products in a given time period with respect to that in a selected base period.