Dashing hopes of recovery, industrial production contracted by 3.2 per cent in November — the lowest level in over four years — due to poor performance of manufacturing sector and a sharp decline in capital goods output.
The Index of Industrial Production (IPP) measuring factory output, grew at 5.2 per cent in November, 2014, as per the data released by the Central Statistics Office (CSO) today.
This is the worst performance since October 2011 when IIP had contracted by 4.7 per cent.
The industrial production growth in October was slightly revised upwards to 9.9 per cent from provisional estimates of 9.8 per cent released last month.
The manufacturing sector, which constitutes over 75 per cent of the index, contracted by 4.4 per cent as against a
growth of 4.7 per cent in the same month last year.
Meanwhile, rising for the fifth straight month, retail inflation or CPI quickened to 5.61 per cent in December, mainly on costlier vegetables and cereals, limiting the headroom for the Reserve Bank to lower rate next month.
Food inflation too rose to 6.40 per cent during the month, government data released on Tuesday showed.
Retail inflation measured by the consumer price index (CPI) was at 5.41 per cent in November 2015 and 4.28 per cent in December 2014.
Retail prices of cereals and products moved up by 2.12 per cent in December, from 1.7 per cent in November.
The growth in prices in meat and fish stood out at 6.57 per cent as against 5.34 per cent in November while that of eggs was at 0.97 per cent, from 0.5 per cent in the previous month.
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