India Consumer Price Inflation Steady In September

India Consumer Price Inflation Steady In September

Manufacturing sector, which accounts for more than three-fourth of the entire index, continued to growth at 3.1 percent in August, compared with 0.1 percent growth in July, government data showed.

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 latest print is lower than 4.39 per cent recorded in September a year ago.

Industrial production (IIP) rose to 4.3 per cent in August, up from July's 1.2 percent growth.

RBI pared down its economic growth projection based on gross value added (GVA) to 6.7% for 2017-18 from 7.3% estimated earlier blaming the tepid growth in foodgrains production, adverse impact of implementation of Goods and Services Tax on the industries and weak consumer confidence. This was higher than the 4 per cent growth recorded in same month last fiscal.

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The output of the mining and electricity sectors grew at 9.4 per cent and 8.3 per cent as compared to August 2016. The current inflation rate remains below the Reserve Bank's 4 per cent target. "However, 13 of the 23 sub-sectors of manufacturing with a weight of 27% in the IIP, recorded a contraction in August 2017".

The IIP growth in July was revised to 0.94% from 1.2% in the provisional estimates released last month.

IIP growth during April-August period of this fiscal stood at 2.2 per cent, down from 5.9 per cent in the same period in 2016-17.

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