New Delhi: Retail inflation inched slightly in October led by fuel, light, and some food prices, while industrial output growth slowed to seven-month low in September as a basic effect and economist said backup data to the Indian reserve bank (RBI ) To continue the interest rate policy that is easy for now.
The data released by the National Statistics Office (NSO) on Friday showed inflation, which was measured by the Consumer Price Index (CPI), up 4.5% annually, slightly higher than 4.4% in the previous month and below 7.6 % recorded in October 2020.
Urban inflation is at 5% while rural inflation slows down to a 10-month low of 4.1%.
Core inflation (which minus food and fuel) remained sticky at 6.1% in October, above 5.9% in the previous month.
Vegetable prices fell 19.4% during the month while oil and fat rose 33.5% for a month.
“Steps such as cutting customs for fuel, the imposition of stock limits and the neglect of basic import duties in oil that can be expected to limit domestic inflation despite the soaring price of fuel and vegetable oil in the global market.
Inflation in the service sector tends to continue to increase because Momentum in vaccination continues and mobility rebounds to the pre-pandemic level, “said the treatment ratings in a note.
Separate data released by NSO showed the industrial production index (IIP) rose 3.1% annually in September, lower than 11.9% in the previous month and above 1% was recorded in September 2020.
The manufacturing sector grew 2.7% In September compared to 0.4% in the previous year, while mining grew 8.6%.
The electricity sector rose 0.9% in September, lower than 4.9% was recorded in September 2020.
The capital goods sector, was seen as a barometer of industrial activity, up 1.3% compared to the contraction of 1.2% in the previous month.
“The IIP growth of India slipped to a 7-month low of 3.1% on September 21 with a detrimental basis and sequential contraction in good activities while playing.
The month was a testimony to supply side disorders that burden production, with downside fortunately closed by superior season LED ramp-up celebrations in the consumer sector, “according to the Quanteco research company.