Retail inflation eases to 3.28% in September

Retail inflation eases to 3.28% in September

India's industrial growth and inflation may trend up as key metrics such as index of industrial production (IIP), consumer price index (CPI) and wholesale price index (WPI) are expected to come in higher, driven by a waning goods and services tax (GST) impact and higher commodity rates, says a Morgan Stanley report.

According to the data furnished by the Ministry of Statistics and Programme Implementation, September's consumer price index (CPI) inflation remained static at 3.28 per cent as compared to August.

Industrial production (IIP) rose to 4.3 per cent in August, up from July's 1.2 percent growth. This was higher than the 4 per cent growth recorded in same month last fiscal. The rate continues to be below 4 per cent, the mid-term target set by the Reserve Bank of India (RBI).

The August mining sector output is at 9.4 per cent against 4.8 per cent in July, while the manufacturing sector output is at 3.1 per cent, against 0.1 per cent in July.

Fuel inflation stood at 5.56 percent in September, while housing inflation stood at 6.10 per cent.

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

On a month-on-month basis, the CPI declined 0.15 percent and food prices fell 1.36 percent in September. She added, "Encouragingly, the sequential improvement in industrial growth in August 2017 was broad-based, led by all three sectors (mining, manufacturing and electricity) and five of the six use-based industries (except infrastructure/construction goods)".

As food prices remained steady, the country's retail inflation also remained flat at 3.28% in September.

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