IIP growth drops to 4-month low of 3.6 percent in September Retail Inflation increases

India's Index of Industrial Production, the most important parameter to judge performance of industrial sector, grew by 3.6% in September compared to 6.4% in August compared. This is also the lowest IIP Growth in last 4 months. IIP growth stood at just 2.6% in September last year. Manufacturing sector output, which constitutes over 75% of the index, grew by 2.6% in September compared to 2.7% in the same month last year. For the April-September period of the current financial year, cumulative IIP growth stood at 4% compared to 2.9% in the same period last year.

At the same time, India's Retail inflation, measured by Consumer Price Index, increased to 5% in October compared to 4.41% in September. Retail inflation in cereals and products stood at 1.46%, in vegetables 2.42% and in fruits 1.98% in October. Retail inflation rose to 5.54% in rural areas in October compared to 5.05% in previous month while it rose to 4.28% in urban areas in October compared to 3.61% in the previous month.