Retail inflation hits 14-month high, rises to 6.21 per cent in October
India’s retail inflation surged to 6.21% in October, a 14-month high driven by rising food and fuel prices, while industrial output expanded by 3.1% in September.
India’s retail inflation surged to a 14-month high of 6.21% in October, exceeding the Reserve Bank of India’s (RBI) target range. This rise in inflation, attributed to higher food and fuel prices, may prompt tighter monetary policies in the coming months.
India’s Index of Industrial Production (IIP) showed a positive shift, expanding by 3.1% in September compared to a 0.1% contraction in August. According to data from the Ministry of Statistics and Programme Implementation (MoSPI), key sectors such as mining, manufacturing, and electricity recorded growth rates of 0.2%, 3.9%, and 0.5%, respectively, indicating a recovery in industrial output.
India’s industrial production rose 3.1% year-on-year in September, recovering after a contraction in August. The increase was primarily due to growth in manufacturing, which increased by 3.9%.
Sectoral performance
• Manufacturing rose 3.9% year-on-year in September, while electricity generation increased 0.5% and mining activity increased slightly by 0.2% .
• In contrast, these sectors grew significantly in September 2023: 5.1%, 9.9% and 11.5% respectively.
Continuous improvement overall
In the April-September period, industrial production grew by 4%, slower than the adjusted growth rate of 6.2% for the same period in 2023.