According to data released by the government, the retail inflation rate for the month of August stood at 3.36 per cent.
Meanwhile, beating expectations retail inflation remained flat at 3.28% in September, following the August numbers being revised to 3.28% from the earlier projected 3.36%. 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.
The August intermediate goods output is at -0.2 per cent, against -1.8 per cent in July.
The August mining sector output is at 9.4 per cent against 4.8 per cent in July, while the manufacturing sector output is at 3.1 per cent, against 0.1 per cent in July. The previous high in IIP growth was recorded at 5.1 per cent in November 2016.
Primary goods' production grew sharply at 7.1 percent in August as compared with 2.3 percent jump last month.
On the retail inflation measured in terms of Consumer Price Index (CPI), Madan Sabnavis, Chief Economist, CARE Ratings Ltd, said in a statement that "inflation came down to 3.3% contrary to our own expectations of 3.9%. However, 13 of the 23 sub-sectors of manufacturing with a weight of 27% in the IIP, recorded a contraction in August 2017".
Ministry of Statistics and Programme Implementation has revised the Base Year of the Consumer Price Index (CPI) from 2010=100 to 2012=100 with effect from the release of indices for the month of January 2015. The September CPI food inflation is at 1.25 per cent, against 1.52 per cent in August, while the CPI fuel, light inflation stands at 5.56 per cent, against 4.94 per cent in August.