Sept retail inflation at 5-month low, Aug factory output up 11.9%

India's retail inflation fell to a five-month low of 4.35% in September from 5.3% in August, as food prices softened, official data released Tuesday showed.

Food inflation eased to 0.68% from 3.11% in August. This is the third consecutive month that the retail inflation, as measured by the Consumer Price Index (CPI) has stayed within the Reserve Bank of India’s range of 4-6%.

Inflation in food and beverages fell to 1.61% from 3.8% in August. Fuel and light inflation was 13.63%, as against 12.95% last month.


A separate set of data released by the Ministry of Statistics and Programme Implementation (MoSPI) showed that factory output grew 11.9% in August compared to a 7.1% contraction a year ago. The index of industrial production (IIP) has grown 11.4% on-year in July. However, on a sequential basis, the IIP showed a marginal decline of 0.23% as the index in August was 131.1 while in July, it was 131.4.

Mining output rose 23.6%, manufacturing production increased 9.7% and electricity generation was up 16% in August.