Factory output powers down in Nov, food fuels inflation in Dec

Food inflation, measured by the consumer food price index rose to 9.53% in Dec, up from 8.70% in Nov

- Rhik Kundu

The Indian economy faced a double whammy towards the close of the year as industrial output cooled and inflation jumped, data released on Friday showed.

While industrial output growth fell to an eight-month low of 2.4% in November, consumer price index (CPI)-based inflation rose 5.69%, its fastest pace in four months in December, the statistics ministry said.

Though factory output points to a slowdown in manufacturing growth momentum in November, in the April-November period of this fiscal, it expanded 6.4%, a notch above the 5.5% figure in the same time a year ago.

Inflation at elevated levels underlines the central bank’s cautious stance on interest rates, signalling possible measures by the government to curb rising prices.