The Central Statistics Office (CSO) also revised downwards the August inflation to 3.28 per cent from 3.36 per cent.
Additionally, the Consumer Food Price Index (CFPI) for all India Rural, Urban and Combined stood at 1.25% compared to 1.52% of August 2017 and 3.96% of September 2016.
The YoY CPI dropped to 3.44 per cent in urban areas and 3.15 per cent in rural areas in September as compared to 3.64 per cent and 5.04 per cent respectively in the corresponding period a year ago.
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Factory output growth measured in terms of Index of Industrial Production (IIP) rose in August mainly on account of improvement in performance mining, electricity and capital goods.
Ms. Nayar said appreciable strengthening of the industrial growth in August 2017 from the mild 0.94% in July 2017 was on expected lines, as restocking of manufactured items gained steam following the introduction of the GST and prior to the festive season. This was higher than the 4 per cent growth recorded in same month last fiscal.
The August intermediate goods output is at -0.2 per cent, against -1.8 per cent in July.
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Primary goods' production grew sharply at 7.1 percent in August as compared with 2.3 percent jump last month. "However, 13 of the 23 sub-sectors of manufacturing with a weight of 27% in the IIP, recorded a contraction in August 2017".
The annual consumer price inflation remained steady in September from the previous month, but hopes of a rate cut by the Reserve Bank of India remain bleak as it expects higher inflation in coming months.
RBI in its policy review meet on 4 October, kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7% for the current fiscal.
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