Industrial output growth rebounded to 3.8% in November 2014 while retail inflation increased up to 5% on the back of higher food prices the next month. However, the data still held out hopes of an interest rate cut by Reserve Bank of India to boost growth.
Industrial output rose after a contraction of 4.2% in October. The rebound was led by an upturn in the manufacturing, capital goods, electricity and mining sectors.
Retail inflation went up from November's 4.4%, largely led by firmness in some food items. However, it still remained within RBI's comfort zone, raising hopes of a cut in interest rates.