CPI Inflation at 3.28% in September; August IIP rises 4.3%

Gladys Abbott
October 13, 2017

The earlier projected Inflation rate for August stood 3.36 per cent. IIP or Index of Industrial Production grew to a nine-month high of 4.3 per cent in August.

Economists had expected inflation to accelerate for a third straight month to 3.53 percent.

RBI in its policy review meet on 4 October, kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7% for the current fiscal.

The IIP growth stood at 4 per cent in August 2016, as per data released by the Central Statistics Office (CSO).

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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. This was higher than the 4 per cent growth recorded in same month last fiscal. On the other hand, the inflation print rose in the fuel and light category to 5.56 per cent. The cumulative growth for the period April-August 2017 over the corresponding period of the previous year stands at 2.2 percent. 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)".

The Index of Industrial Production (IIP) had registered a tepid growth of 1.2 per cent in July this year.

India's annual retail inflation remained static in September with a marginal drop in the food prices, official data showed on Thursday.

Meanwhile, the July IIP number was revised to 0.94 per cent from 1.2 per cent provisional estimates released last month.

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