India's industrial output jumps 2.5%, inflation eases
India’s retail inflation fell to a three year low of 5.52% in October and industrial output rebounded to 2.5% in September, rekindling hopes that cooling prices will nudge the RBI to cut lending rates leading to lower EMIs in its monetary policy next month.business Updated: Nov 13, 2014 03:24 IST
India’s retail inflation fell to a three year low of 5.52% in October and industrial output rebounded to 2.5% in September, rekindling hopes that cooling prices will nudge the RBI to cut lending rates leading to lower EMIs in its monetary policy next month.
The data came out on a day when India’s share markets scaled new heights anticipating a string of reforms in the coming weeks.The Benchmark BSE Sensex for the first time settled above the 28,000 level and NSE Nifty crossed 8,400.
Oil companies may cut further petrol and diesel on plunging global crude oil costs, a move that will aid government's efforts to keep inflation low and stable.
The more than one percentage point drop in inflation rates over September’s 6.46%, should bring cheer to the NDA government that rode to a landslide election victory promising to bring down prices of essentials as part of its poll pledge to usher in 'Achein din’ (Good days).
The Index of Industrial Production (IIP)—a broad metric to measure activity in factories across the country-- surged in September from a flat 0.4% growth in the previous month buoyed by robust power and capital goods output.
Capital goods output, a proxy for investment activity, grew 11.6% in September mirroring that companies may have begun to add capacity lines expecting demand for goods to pick up.
The manufacturing sector, which constitutes over 75% of India’s total industrial output, grew 2.5% in September compared to a growth of 1.4% a year ago.
The fall in retail inflation measured by the consumer price index (CPI)—a metric that captures shop-end prices, was driven by a fall in food inflation to 5.59% In October from 7.67%. Inflation fell in vegetables, which accounts more than a tenth of the food basket—contracted 1.45%.
First Published: Nov 12, 2014 18:26 IST