India’s consumer price inflation numbers remained steady in September while industrial production rose favourably. According to preliminary data released by the Central Statistics Office on Thursday, the consumer price index (CPI) increased 3.28 per cent year on year against the August numbers of 3.36 per cent.
Experts and economists predicted a rise in inflation from the August figures though it was widely projected to remain under 4 per cent. Food price inflation also dipped from 1.52 per cent to 1.25 per cent. CPI dropped 15 basis points or 0.15 per cent month-on-month and food prices dipped 1.36 per cent in September. The drop in CPI comes after a five-month period of hikes.
Meanwhile, the index of industrial production (IIP) increased to 4.3 per cent in August against July’s figure of 1.2 per cent. Since June, IIP has also recovered from a negative position to a favourable number now indicating waning impact of GST as well.
Looking at the growth of industries in manufacturing sector, at least 10 out of the 23 industry groups in the manufacturing sector have shown an uptick in growth for August. The drop in inflation could also raise demands for a rate cut now from the Reserve Bank of India that had kept the benchmark rates unchanged due to rising inflation trend.