Inflation as measured by the Consumer Price Index (CPI) soared to 10.09 percent in October, driven by costlier vegetables and fruits such as onions and tomatoes, government data showed. (Agencies)
The Index of Industrial Production (IIP) rose 2 percent from a dismal 0.43 percent in August, mainly on account of better output of the power (rpt) power and mining sectors. Factory output had contracted by 0.7 percent in September last year.
"It is moving in the right direction, which we are hoping it will," Economic Affairs Secretary Arvind Mayaram said.
IIP data for August was revised downwards to 0.43 percent from 0.6 percent.
The data showed industrial output for April-September rose 0.4 percent compared with 0.1 percent in the same period of 2012-13.
However, industry wasn't enthused by the September IIP figure in the backdrop of eight core industries registering an 11-month high growth of 8 percent in September, and exports in October increasing at 13.47 percent, the fastest pace in two years.
"The modest increase in IIP for the month of September is not reason enough for us to conclude that industry has turned the corner and is on a path to recovery," said Chandrajit Banerjee, Director General of the Confederation of Indian Industry.
On retail inflation, Mayaram said there is an upward movement in prices before the arrival of new crops and he hoped that food inflation would come down.
"CPI has reached 11 percent...every time you see, before the crop hits the market there is upward movement in price. In any case, the food ministry has started releasing stocks and we should hope for food inflation coming down and pray hard for it," he said.
Inflation as measured by the Consumer Price Index (CPI) soared to 10.09 percent in October, driven by costlier vegetables and fruits such as onions and tomatoes, government data showed.