India’s consumer price inflation accelerated in September after slowing in the previous two months, and industrial production growth in August exceeded expectations, provisional data from the Central Statistics Office showed Monday.
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A Reuters poll of economists had expected consumer inflation to rise 4.3 per cent. The forecasts of the 20 economists polled ranged between 3.6 per cent and 5.0 per cent.
The manufacturing growth was powered by a 21.8 per cent rise in capital goods while consumer goods rose 6.8 per cent-durables was up 17 per cent while non-durables was flat at 0.4 per cent.
The CPI for September a year ago was at 5.63 percent.
In the month of July, retail reflation stood at a multi-year low of 3.78 percent on account of cheaper food prices, including of vegetables, fruits and cereals.
Among the various categories under the general index, the inflation percentage in September was higher in “clothing and footwear” at 6 percent, and “fuel and light” at 5.42 percent.
The government also revised the August CPI number higher to 3.74 percent from 3.66 percent earlier.
Retail inflation in pulses and products category rose to 29.76 per cent in September.
Instead, in a worsening of the crisis for millers, retail inflation in sugar fell further by 12.91 percent.
Making the fourth cut in interest rates this year, the RBI cut the repo rate, at which it lends to commercial banks, by 50 basis points last month to bring it down to 6.75 percent.
Inflation is expected to remain at zero again when official figures for September are published this week.
“Improvement in IIP (industrial output) growth was anticipated on account of revival in mining and electricity growth seen in the core sector numbers released earlier”.
Pump prices likely tumbled by 8.7% after seasonal adjustment during the reference period, more than double the 4.1% falloff recorded in August.
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“Going ahead as well, overall food prices could be expected to stay under control despite a 14 per cent deficient monsoon, led by government’s supply side intervention policies, she said”.
