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Factory Output Growth Surges To 9-Month High, Inflation Eases
12 October 2017, 05:18 | Cesar Cruz
Industrial production has made a remarkable growth at 4.3% defying slowdown from previous month’s 1.2
The previous high in IIP growth was recorded at 5.7 percent in November 2016.
In a boost to the economy, the factory output growth in August surged to 9-month high of 4.2 per cent, indicating an acceleration of industrial activities after the initial setback due to GST-related destocking.
Factory output measured by the index of industrial production (IIP) is the closest approximation for measuring economic activity in the country's business landscape.
Economists surveyed by Reuters had forecast 2.4% growth in output compared with a revised 0.9% year-on-year increase in July.
The August intermediate goods output is at -0.2 per cent, against -1.8 per cent in July.
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 Consumer Price Index (CPI) inflation for September 2017 came in at better-than-expected 3.28 per cent, the same level as previous month.
Retail inflation has been steadily rising since June, when it eased to 1.46 percent - its slowest pace since India started releasing such figures in January 2012, based on combined data for rural and urban consumers. The September CPI food inflation is at 1.25 per cent, against 1.52 per cent in August, while the CPI fuel, light inflation stands at 5.56 per cent, against 4.94 per cent in August.
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