Industrial output growth dips to 4.3% in July; retail inflation rises to 3.21% in August

New Delhi, Sep 12: The industrial production growth slowed to 4.3 percent in July, dragged mainly by manufacturing sector's poor show, while retail inflation rate rose to 3.21 percent in August due to higher food prices, said government data released on Thursday.

Though the retail inflation rose, it remained under 4 percent, the comfort level of the Reserve Bank of India (RBI), for the straight 13th month.

Factory output, as measured by the Index of Industrial Production (IIP), had expanded 6.5 percent in July 2018.

The industrial output growth was recorded at 1.2 percent in June and 4.6 percent in May this year.

According to data released by the Ministry of Statistics and Programme Implementation, industrial output grew at 3.3 percent in April-July period this fiscal, down from 5.4 percent growth in the same period a year ago.

On August 23, Finance Minister Nirmala Sitharaman announced a slew of measures like eased foreign investment rules, concessions on vehicle purchases and encouraged banks to make loans cheaper to spur growth from a five-year low.