India's factory output up at 5.7%, retail inflation falls to 3.41%

India's factory output rose 5.7 % in November, the first month of the government's demonetisation drive, while retail inflation declined to 3.41 % in December from 3.63 % in the month before, official data showed on Thursday. 

The factory output, as per the Index of Industrial Production (IIP), declined by 1.81 % in October and a 3.4 % slide in the corresponding month of last year. 

 

As per the IIP data released by the Central Statistics Office (CSO), the factory output rise was mainly on account of a 5.5 % increase in manufacturing output, which also has the maximum weight in the overall index. 

Among the other two major sub-indices, electricity generation increased by 8.9 % while that for mining output was up by 3.9 %.The cumulative growth of the country's factory output inched up by 0.4 % in the first seven months of the current fiscal, as against cumulative growth of 3.8 % during the corresponding period of last fiscal. 

 

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Retail inflation, according to the Consumer Price Index (CPI) data, eased last month from 5.61 % reported during the corresponding period last year. The fall in CPI was mainly due to a drop in the annual food inflation to 1.37 % in December from 2.03 % in November. The CPI data revealed that the annual retail inflation for rural India was 3.83% while that for the urban centres was 2.90 %. The annual food inflation was 2.06 % in rural areas and 0.15 % in the urban conclaves.

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