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India Inflation Eases More Than Expected, Industrial Output Growth Hits 14-Month High

India’s consumer price inflation eased more-than-expected in September, largely due to a slowdown in food costs, data published by the National Statistical Office showed on Thursday.

Separate official data showed that industrial production logged double-digit growth in August.

The consumer price index posted an annual increase of 5.02 percent in September, slower than the 6.83 percent increase in August. In the same period last year, inflation stood at 7.41 percent.

Inflation was expected to ease to 5.5 percent in September.

Further, inflation came back to the central bank’s tolerance band of 2-6 percent for the first time in three months.

For the current financial year, the Reserve Bank of India sees consumer price inflation at 5.4 percent.

Food price inflation weakened to 6.56 percent in September from 9.94 percent in the prior month.

Clothing and footwear costs rose 4.61 percent over the year, while those for fuel and light dropped by 0.11 percent.

On a monthly basis, consumer prices were down 1.13 percent, and food prices dropped 2.18 percent in September.

Another piece of official data showed that the annual increase in industrial production accelerated to 10.3 percent in August from 6.0 percent in July.

This was the highest rate of growth since June 2022. The expected increase was 9.0 percent.

All three sectors posted growth in August, with mining registering the biggest percent expansion of 8.3 percent. Electricity and manufacturing grew 5.4 percent and 5.8 percent, respectively.

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