Inflation rises marginally in Sept, Industry output low

India's consumer price inflation inched up marginally to 3.77% in September backed by higher food and fuel prices while poor mining output dragged the industrial production growth to a three-month low of 4.3% in August.

However, the retail remained within the target of 4% of the Reserve Bank of India.

While food inflation rose to 0.51% in September from 0.29% in August. Fuel and light inflation stood at 8.47%, the government data showed.

The only relief was housing inflation which has been consistently falling as the impact of 7th Pay Commission hike in housing allowance is wearing off gradually. Housing inflation was at 7.07% in September as against 7.59% the previous month. Core inflation was at 5.8%.

The industrial production measured in terms of Index of Industrial Production (IIP) was 4.8% in August last year.

The mining sector production contracted by 0.4% in August compared to a growth of 9.3% in the same month last year.

Capital goods output, a barometer of investment in the economy, decelerated to 5% during September from an expansion of 7.3% last year.

The IIP growth is the lowest since May when industrial production grew at 3.9%. A lower than expected number of eight key infrastructure sector in August pointed towards a dip in industrial output.

Manufacturing output increased 4.6% compared with 3.8% last year. Electricity generation growth stood at 7.8% compared to 8.3% last year.

In terms of industries, 16 out of 23 industry groups in the manufacturing sector showed positive growth during the month of August.

The consumer durables and consumer non-durables have recorded growth rates of 5.2% and 6.3% respectively.