Industrial production growth up 4.3% in July, retail inflation touches 3.21%

Retail inflation inches up to 3.21% in August; factory output at 4.3% in July

Annual retail inflation in August was slightly higher compared with 3.15% in the previous month, and in line with analysts' forecasts.

India's economy reported its weakest growth in more than six years at 5% in the June quarter and slowed for the sixth straight quarter, prompting the government to unleash a spate of measures to spur economic activity. The Index of Industrial Production (IIP) grew 6.5% in July 2018.

Inflation in rural areas of the country was at 2.18% and 4.49% in the urban areas in August.

The cumulative growth for the period April-July 2019 stood at 3.3 per cent, down from 5.4 per cent growth in the same period a year ago.

Meanwhile, India's factory output growth, measured by the Index of Industrial Production, grew 4.3 per cent in July 2019 as compared to the level in the month of July 2018, government data showed.

The power generation sector grew at 4.8 per cent in July, compared to 6.6 per cent a year ago earlier. Mining sector grew at 4.9 per cent in July as compared to 3.4 per cent in the corresponding period past year.

Data released today showed the CPI core index rose 0.3% during August.

Consumer price-based inflation at 3.21 per cent is well below the Reserve bank of India's (RBI's) medium-term target of 4 per cent.

Retail food prices, which make up almost half of India's inflation basket, increased 2.99 percent in August year-on-year, compared with a revised 2.36 percent in July, while prices of services such as education, health and entertainment climbed between 5.54 percent and 7.84 percent.

The RBI, which mainly factors in CPI for arriving at its bi-monthly monetary policy, has been mandated by the government to ensure that inflation remains at 4%, with deviation of 2% on either side.

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