The Index of Industrial Production (IIIP) or factory output data in the month of September rose to 4.5 per cent from 4.3 per cent in the previous month. However, this was a bit lower than an upwardly revised 4.7 per cent on-year increase in the month of August, the government data showed. "The Quick Estimates of Index of Industrial Production (IIP) with base 2011-12 for the month of September 2018 stands at 128.6, which is 4.5% higher as compared to the level in the month of September 2017," CSO said in its statement. Another government data showed that consumer inflation stood at a 13-month low of 3.31 per cent in the October month. The recent inflation numbers came on the back of cheaper kitchen staples and protein-rich items. The CPI inflation was lower than the assumption of 3.67 per cent made by analysts in a poll conducted by news agency Reuters earlier.


October's consumer inflation reading stood below the Reserve Bank of India’s (RBI) mid-term goal of 4 per cent for the third straight month. The recent government data released on Monday supports the central bank's surprise decision to hold interest rates in its last policy statement. The RBI had, in its October 5 meeting, decided to maintain status quo on key lending rates, while ruling out any reduction for the time being. The retail inflation number is the lowest since September 2017 when it touched 3.28 per cent.

For the month of October, prices of vegetables fell by 8.06 per cent compared to a 4.15 per cent decline in September month. Even in the fruits segment, inflation also slowed to 0.35 per cent in when compared to 1.12 per cent recorded previous month.

The data also stated that inflation eased in protein-rich items including cereals, eggs, milk and related products. However, inflation rose to 8.55 per cent for the fuel and light category in comparison to 8.47 per cent last in September.

Food deflation stood at 0.86 per cent in October, as against inflation of 0.51 per cent in the previous month, according to the official release. Several economists are of the opinion that the sudden decline in food prices led to the softening of consumer inflation.