Published: Thu, October 12, 2017
Business | By Max Garcia

Double boost for economy: Industrial output growth rebounds; inflation cools

Double boost for economy: Industrial output growth rebounds; inflation cools

Food price inflation that measures kitchen costs, remained soft at 1.76 per cent. Vegetables prices grew at 3.92 per cent in September as compared to 6.1 per cent in August.

India's industrial output grew sharply 4.3 percent in August, highest in nine months, showing signs of recovery, aided by an expansion in the manufacturing sector.

Meanwhile, the index of industrial production (IIP) increased to 4.3 per cent in August against July's figure of 1.2 per cent. The September inflation data is lower than estimates. Rate of price rise in pulses continued with deflationary trend at (-) 22.51 per cent and eggs prices fell by 0.15 per cent.

The factory output growth, measured on the Index of Industrial Production (IIP), for April-August period accelerated to 2.2 percent from 5.9 percent in the same period last fiscal, as per the data released by the Central Statistics Office on Thursday. Similarly, consumer non-durables grew almost 7 percent, which contracted (-) 0.1 percent in July. The consumer price index (CPI) based inflation stood at 4.39 percent during the same month a year ago. The CPI Inflation for September was recorded 3.28%, down from previous month's 3.36% mainly due to fall in food prices post monsoon.

At least 10 industry groups showed growth in manufacturing sector.

According to BNR, the CPI annual inflation rate going back to the target interval was estimated to occur in the third quarter of 2017.

It was 3.36 percent in the previous month.

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