Expert Views: India's consumer inflation eases to 3.28 percent in September

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The average rate of consumer prices based on the CPI over the last 12 months (October 2016-September 2017) as compared to the previous 12 months (October 2015-September 2016) was 0.4%.

India's annual consumer inflation in September marginally eased to 3.28% from a year ago, government data showed on Thursday.

India's industrial output grew sharply 4.3 percent in August, highest in nine months, showing signs of recovery, aided by an expansion in the manufacturing sector.

The previous high in IIP growth was recorded at 5.7 per cent in November 2016. The consumer price index (CPI) based inflation stood at 4.39 percent during the same month a year ago.

Prices of food products went up last month 0.54 pct, similar to those of non-food products while service tariffs increased 0.32 pct.

The Consumer Price Index (CPI) or retail inflation stood at 4.39 per cent in September 2016.

Economists surveyed by Reuters had forecast 2.4% growth in output compared with a revised 0.9% year-on-year increase in July. However, the with August's industrial production at 4.3%, it is inching towards 4.5% growth in July past year.

Inflation rose to 2.36 percent in July, after consistently falling for three straight months. The current inflation rate remains below the Reserve Bank's 4 per cent target.

IIP figures showed that the roll-out of the GST regime did not push industrial production into a negative zone, as some experts had predicted.