Industrial growth at 9-mth high;inflation stays flat at 3.28pc

Double boost for economy Industrial output growth rebounds inflation cools

Industrial growth at 9-mth high;inflation stays flat at 3.28pc

Industrial production, as represented by Index of Industrial Production (IIP) for the month of August 2017 stands at 121.5, which is 4.3 percent higher as compared to the level in the month of August 2016.

India's industrial growth and inflation may trend up as key metrics such as index of industrial production (IIP), consumer price index (CPI) and wholesale price index (WPI) are expected to come in higher, driven by a waning goods and services tax (GST) impact and higher commodity rates, says a Morgan Stanley report. According to preliminary data released by the Central Statistics Office on Thursday, the consumer price index (CPI) increased 3.28 per cent year on year against the August numbers of 3.36 per cent.

This month's CPI remained same as August 2017 at 3.28%, however lower compared 4.39% in the corresponding month of the previous year.

The worrying factor, however was manufacturing sector growth, which decelerated to 3.1 per cent in August from 5.5 per cent a year ago.

Both the Asian Development Bank as well as the Organisation for Economic Cooperation and Development (OECD) have also cut their growth projections for India to 7% and 6.7%, respectively, for fiscal 2017-18. The food inflation is at 1.25 per cent, against 1 per cent in July.

The output of the mining and electricity sectors grew at 9.4 per cent and 8.3 per cent as compared to August 2016.

The July IIP growth has been revised to 0.9 per cent from 1.2 per cent.

The August intermediate goods output is at -0.2 per cent, against -1.8 per cent in July.

As food prices remained steady, the country's retail inflation also remained flat at 3.28% in September.

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