For nine months now, retail inflation has remained above the upper limit mandated by the Reserve Bank of India. The central bank aims to keep inflation in the range of 2% to 6%.
In September, the food inflation increased to 8.60% from 7.62% in August. The highest price rise was recorded in vegetables (18.05%), followed by spices (16.88%), milk (11.53%) and fruits (5.68%).
The inflation rate for fuel and light declined to 10.39% from 10.78% in August.
Meanwhile, India’s industrial growth, measured by the Index of Industrial Production, contracted to 0.8% in August, data released by the Ministry of Statistics and Programme Implementation showed. Industrial growth had shown a steep decline of 2.4% in July as against 12.3% in June. The electricity sector grew by 1.4%.