Consumer price inflation hit a four-month peak of 5% in October, while industrial output growth slowed to a four-month low of 3.6% in September, showed the official data released on Thursday.
Food inflation in the consumer price index (CPI) rose to 5.25% year-on-year in October, compared with 3.88% in the previous month, thanks to a 42.2% spurt in pulses inflation. Still, analysts believe food inflation is under control, considering the fact that monsoon rains remained deficient for a second straight year in 2015, adding that the headline CPI inflation would undershoot the central bank’s expectation of 5.8% by January 2016. However, since Reserve Bank Of India governor Raghuram Rajan has already “frontloaded” monetary easing in the form of a sharper-than-expected cut in the repo rate by 50 basis points this month, it’s unlikely to go for another round of easing action anytime soon despite the slowing industrial output growth, said analysts.
The latest data showed the Index of Industrial Production (IIP) in September grew slower than 6.3% in the previous month. Manufacturing grew 2.6% in September, compared with 2.7% a year before. Mining rose 3% in September, against 0.1% in the same period last year, while electricity generation surged 11.4%, compared with 3.9% a year earlier.