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CPI rises 3.28% in September; August IIP jumps 4.3%

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India's factory output grows sharply at 4.3% in August

A Reuters poll of economists which had projected inflation at 3.60 per cent.

The September CPI stands at 3.28 per cent, against 3.23 per cent registered in August, CPI rural inflation is at 3.15 percent against 3.22 percent in August, CPI urban inflation stands at 3.44 percent against 3.35 percent in August, CPI core inflation is at 4.6 percent against 4.5 percent posted in August.

India's consumer price inflation held steady in September, defying expectations for an acceleration, preliminary data from the Central Statistics Office showed Thursday.

The cumulative growth in these three sectors during April-August 2017 over the corresponding period of 2016 has been 3.3 percent, 1.6 percent and 6.2 percent respectively. Retail inflation stood at 4.31 per cent in September, 2016.

The Index of Industrial Production (IIP) in the month of August 2017 grew at a 9-month high 0f 4.3%.

Food and beverages during the month under consideration recorded a rise of 1.76 per cent over the same month a year ago.

The August intermediate goods output is at -0.2 per cent, against -1.8 per cent in July.

In terms of industries, 10 out of 23 industry groups in the manufacturing sector showed positive growth during August 2017. "This is a good sign that notwithstanding the expected increase in prices of some food products, rentals/housing, transport and clothing, inflation has remained low".

However, the Reserve Bank at its policy review meeting earlier this month kept the key interest rate unchanged at 6 per cent, citing upward trend in inflation.

On a month-on-month basis, the CPI declined 0.15 percent and food prices fell 1.36 percent in September.

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