India’s factory output growth decelerated sharply to 3.6 percent in September from 6.4 percent in the month before, even as retail inflation for October moved up significantly to 5.25 percent from 4.41 percent for the month before, official data showed on Thursday.
While the industrial production growth was lower on account of a dip in manufacturing index, the inflation rate moved up due to sharp increased in the prices of food articles in general and those for pulses, in particular, as per separate sets of data released by the ministry of statistics and programme implementation.
A survey of economists by Reuters’ had forecast that retail inflation in October would accelerate to 4.82 percent year-on-year.
Retail food inflation in October came in at 5.25 percent, higher than 3.88 percent recorded in September.
India’s central bank estimates retail inflation to be at 5.8 percent by January 2016.