Retail inflation in India drops to 5.02% in September
What's the story
India's retail inflation, as measured by the Consumer Price Index (CPI), has dropped to 5.02% in September, according to data shared by the National Statistics Office (NSO). This is a decrease from the 7.44% inflation rate seen in July and 6.83% in August 2023. The NSO collects price data from 1,114 urban markets and 1,181 villages nationwide.
Details
Industrial output rises to 10.3% in August
The Index of Industrial Production (IIP) revealed a notable boost in industrial output, hitting 10.3% in August. This is a significant change from the 0.7% decline observed in August 2022. Industrial output serves as the best estimate for gauging economic activity within India's business landscape.
What Next?
Sector-wise performance breakdown
In August, the manufacturing sector's output rose by 9.3%, while mining production saw a 12.3% rise during the same month. Power output also experienced substantial growth, with a 15.3% increase recorded in August. In comparison, the IIP grew by 6.1% during the April-August period, as opposed to the 7.7% growth observed during the same period in 2022-23.
Insights
Economists' forecast and implications
A CNBC-TV18 poll of economists had predicted a CPI of 5.5% and an August IIP of 9.5%. The actual numbers suggest that India's economy could be on an upward trend, with retail inflation easing and industrial output showing encouraging growth. This may potentially lead to further advancements within India's transportation and manufacturing sectors.