Retail inflation at 3.28% in September

Retail inflation eases to 3.28% in September

A man buys lemons at a market in Ahmedabad

The September CPI stands at 3.28 per cent, against 3.23 per cent registered in August, CPI rural inflation is at 3.15 percent against 3.22 percent in August, CPI urban inflation stands at 3.44 percent against 3.35 percent in August, CPI core inflation is at 4.6 percent against 4.5 percent posted in August.

However, on a year-on-year (YoY) basis, the country's September retail inflation was lower than the 4.39 per cent CPI rate reported for the corresponding month of last year.

The Reserve Bank of India (RBI) while keeping the policy rates unchanged in its latest monetary policy review last week, marginally increased the inflation outlook to 4.2-4.6% for the second half (October-March) of the financial year.

Ms. Nayar said appreciable strengthening of the industrial growth in August 2017 from the mild 0.94% in July 2017 was on expected lines, as restocking of manufactured items gained steam following the introduction of the GST and prior to the festive season.

Factory output growth measured in terms of Index of Industrial Production (IIP) rose in August mainly on account of improvement in performance mining, electricity and capital goods.

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. At least 10 industry groups showed growth in manufacturing sector.

Food price inflation that measures kitchen costs, remained soft at 1.76 per cent. Vegetables prices grew at 3.92 per cent in September as compared to 6.1 per cent in August.

The Central Statistics Office (CSO) which released the data on Thursday also revised the July IIP from 1.2 percent to 0.94 percent.

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