Retail inflation spikes to 7.34%; industrial output drops 8%

Rising food prices pushed retail inflation to an eight-month high of 7.34 per cent in September, above the RBI’s comfort level, while industrial output continued to contract in August, official data showed on Monday.

The decline in the Index of Industrial Production (IIP) was 10.8 per cent in July. The contraction in August stood at 8 per cent, as per the latest data.

Manufacturing sector production registered a decline of 8.6 per cent, while the output of mining and power segments fell 9.8 per cent and 1.8 per cent, respectively.