Retail inflation eases to 3.28% in September

The Consumer Price Index or retail inflation stood at 4.39 per cent in September 2016. PTI file

The Consumer Price Index or retail inflation stood at 4.39 per cent in September 2016. PTI file

Experts and economists predicted a rise in inflation from the August figures though it was widely projected to remain under 4 per cent. Food price inflation also dipped from 1.52 per cent to 1.25 per cent. CPI dropped 15 basis points or 0.15 per cent month-on-month and food prices dipped 1.36 per cent in September.

Showing signs of revival, industrial production expanded at its fastest pace in nine months in August at 4.3 per cent, while retail inflation stayed flat at 3.28 per cent in September. The Index of Industrial Production (IIP) recorded 4 per cent growth in August past year.

The factory output stands at 4.3 per cent, while Index of Industrial Production (IIP) is at 4.3 per cent for August 2017, against 1.2 per cent in July.

Industrial output growth was revised to 0.9 per cent year-on-year in July.

During April 2017-August 2017 period IIP grew at 2.2%, down from 5.9% in the same period in 2016-17.

The Reserve Bank of India had raised its inflation projection to 4.2-4.6 per cent for the second half of the current fiscal due to firming global oil prices and uncertainty on kharif farm output.

Electricity production increased 8.3 percent in August as compared with 2.1 percent a year ago.

In terms of industries, 10 out of 23 industry groups in the manufacturing sector showed positive growth during August 2017.

The data revealed the overall food inflation moderated to 1.25 per cent in September from 1.67 per cent in the previous month.

Retail inflation came in at 3.28 per cent in September, unchanged from August, despite softening of vegetable and cereal prices, according to government data.

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