New Delhi, 12 November 2014

India’s consumer price index-based inflation eased to a record low of 5.52 percent during October — from 10.17 percent during the corresponding month last year — on the back of lower food prices and fuel costs, government data showed Wednesday.

The retail inflation rate recorded is the lowest since India started computing consumer price index (CPI) in January 2012.

The retail inflation stood at 6.46 percent in September 2014.

Rural inflation stood at 5.52 percent versus 6.68 percent in September and urban inflation came down at 5.55 percent versus 6.34 percent in September.

The latest data assumes significance as Reserve Bank of India (RBI) had set a target for CPI inflation at eight percent by January 2015 and six percent by January 2016.

In October, vegetables inflation decelerated by 1.45 percent.

But Sugar became costlier by 0.37 percent year-on-year.

Also, milk and milk products became dearer by 10.79 percent and fruits became costlier by 17.49 percent.

Cereals became costlier by 6 percent. Prices of pulses jumped by 7.51 percent.

India’s September industrial output grows at 2.5 percent

Industrial activity, measured in terms of the Index of Industrial Production (IIP), grew by 2.5 percent during September over the corresponding month of the previous year, government data showed Wednesday.

The IIP had increased by 2.7 percent in September, 2013. In August, 2014 the industrial growth stood at 0.4 percent, the Central Statistics Office data showed.

The IIP in July had grown by 0.5 percent, while in June it stood at 3.9 percent.

The cumulative growth for April-September 2014-15 stood at 2.8 percent while the figure for the corresponding period of the previous year stood at 0.5 percent.

The gain in September came mainly due to the higher output of electricity and manufacturing sectors.

In September, the electricity sector grew by 3.9 percent from 12.9 percent in the corresponding month of the previous year.

Manufacturing sector picked up by 2.5 percent from 1.4 percent growth in September, 2013.

The mining sector rose 0.7 percent from 3.6 percent increase in the corresponding month of the previous year.

Capital, basic and intermediate goods showed healthy growth. Fifteen out of the 22 industry groups in the manufacturing sector have shown positive growth during the month under review.

Capital goods grew by 11.6 percent, basic goods rose by 5.1 percent and intermediate goods increased by 1.8 percent.

Segment-wise growth was witnessed in stainless steel (78.5 percent), cable, rubber insulated (60.9), air conditioners (42.7 percent), scooters and mopeds (40.7 percent), three-wheelers (26.6 percent), leather garments (53.3), TV sets (47.2 percent) and transformers (34.8 percent).

Segment-wise, high negative growth was reported in marble tiles (-32.8 percent), earth moving machinery (-24.6 percent), insulated cables (30 percent), antibiotics (25 percent), computers (-39 percent), sacking (39.7 percent) and telephone instruments including mobile phones and accessories(53.6 percent).

-IANS