After two straight months of growth, India’s factory output contracted again. Retail inflation, however, fell to a 14-month low in December mainly on account of decline in food prices.
The Index of Industrial Production (IIP) contracted 1.9% in November as manufacturing (-1.7%) and mining (-7.3%) shrank while electricity output grew 3.5%, according to data released by the National Statistical Office.
The industrial growth in the April-November period of the current financial year shrank -15.5% compared to a 0.3% rise in the same period a year ago. In November last year, the manufacturing sector had seen 3% growth with the mining sector rising 1.9%, and the electricity sector falling (-5.0%).
Separately, retail inflation eased to 4.59% in December from 6.93% a month ago. While vegetable prices fell 10.4% compared to the year-ago period, onion prices also eased considerably.
Non-vegetable prices, though, rose. While oils and fats segment rose 20.05%, eggs gained 16.08% and pulses and products 15.98%. Meat and fish prices also rose 15.21%.
The Consumer Food Price Index (CPI), or the inflation in the food basket, eased to 3.41% in December from 9.5% a month ago
