The index for industrial output (IIP) for the month of September came in at 2.5 percent against 0.4 percent in August.
The News International Team
Inflation based on the Consumer Price Index (CPI) for the month of October eased to its all-time low of 5.52 percent, the lowest since India started computing consumer price index (CPI) in January 2012, triggered by lower food prices and fuel costs.
Meanwhile, the index for industrial output (IIP) for the month of September came in at 2.5 percent beating street estimate of 2 percent, against 0.4 percent in August.
Furthermore, the August IIP has been revised from 0.4 percent to 0.5 percent.
A CNBC-TV18 poll anticipated CPI-based inflation at 5.63 percent versus 6.46 percent on a month-on-month basis.
Core sector, which accounts for a fine 38 percent in the IIP basket, came in at 5.85 percent compared to 5.9 percent in the previous month.
The decline in CPI-based inflation is likely to sharpen calls for interest rate cuts by the Reserve Bank of India, as the RBI has set a target of bringing inflation down to 8 percent by January 2015 and 6 percent by January 2016. However, Governor Raghuram Rajan has admitted to upside risks on the latter target.
Breakup of the CPI components:
- Clothing, footwear, bedding inflation at 7.45 percent Vs 7.59 percent (MoM)
- Combined fuel, light inflation at 3.29 percent Vs 3.45 percent (MoM)
- Vegetable price inflation at -1.45 percent Vs 8.59 percent (MoM)
- Rural inflation at 5.52% Vs 6.68% (MoM)
- Urban inflation at 5.55% Vs 6.34% (MoM)
- CPI food inflation at 5.59% Vs 7.67% (MoM)
Breakup of the IIP components:
- Consumer goods growth at -4 percent Vs -6.9 percent (MoM)
- Consumer non-durables growth at 1.5 percent Vs -0.9 percent (MoM)
- Consumer durables growth at -11.3 percent Vs -15 percent (MoM)
- Intermediate goods growth at 1.8 percent Vs 0.3 percent (MoM)
- Capital goods growth at 11.6 percent Vs -11.3 percent (MoM)
- Basic goods growth at 5.1 percent Vs 9.6 percent (MoM)
- Electricity sector growth at 3.9 percent Vs 12.9 percent (MoM)
- Manufacturing sector growth at 2.5 percent Vs -1.4 percent (MoM)
- Mining sector growth at 0.7 percent Vs 2.6 percent (MoM)
Posted by: Monishi Parekh