13.10.21

Retail inflation at 5-month low in Sept, IIP up 11.9% in August


Retail inflation eased to five-month low in September as prices of some food products including vegetables moderated sharply, while the index of industrial production rose for the sixth successive month, providing much-needed relief, although experts said both numbers have some pressure points, which needed to be watched.

Retail inflation, as measured by the consumer price index, slowed to 4.4% in September, lower than the 5.3% in August, providing headroom to the central bank to move on interest rates if the softness persists. The rate was at 7.3% in September 2020. Rural inflation in September was at 4.1%, while urban was at 4.6%. The food price index was at 0.7% during the month, lower than the 3.1% in August.

Separate data showed industrial production growth for August was at a robust 11.9%, marginally higher than the 11.5% recorded a month earlier in July.

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