Published: Thu, October 12, 2017
Finance | By Loren Pratt

India's August Industrial Production rises 4.3%

India's August Industrial Production rises 4.3%

The industry group "Manufacture of computer, electronic and optical products" showed the highest positive growth of 24.9 percent, followed by 16.5 per cent in "pharmaceuticals, medicinal chemical and botanical productsÂ" and 11.1 per cent in "other transport equipmentÂ".

Retail inflation came in at 3.28 per cent in September, unchanged from August, despite softening of vegetable and cereal prices, according to government data.

Analysts polled by Reuters had expected retail inflation to edge up to 3.60% last month from 3.36% in August.

Primary contributors to September inflation are housing & fuels categories, which have hardened due to HRA effect on housing & global crude price effect on fuel prices. This means inflation trajectory remained well below the RBI target in H1, FY18.

The industrial growth was buoyed by a strong show by mining (9.4 per cent growth), electricity (8.3 per cent) and capital goods (5.4 per cent) sectors. Inflation not easing further dampens hopes of India Inc for interest rate cuts.

Rising energy prices and implementation of farm loan waivers aggravates the inflationary pressure.

For the end of 2018, BNR estimates a 3.2 pct inflation rate, as compared to 3.1 pct previously estimated.

"There will be improvement in aggregate demand for commodities during festive season", Hitesh Jain, associate vice president- research, IIFL Wealth Management.

The data revealed the overall food inflation moderated to 1.25 per cent in September from 1.67 per cent in the previous month.

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