Food inflation slowed to 1.4% in December compared to 2% in the previous month, largely on the back of a 14.6% decline in vegetable prices and 1.6% contraction in prices of pulses.
Meanwhile, the industrial production grew by 5.7 per cent in November against contraction of 3.4 per cent same month past year.
Moreover, factory output measured in terms of Index of Industrial Production (IIP) also got a push in November 2016, registering s growth of 5.7 per cent for the month, year on year, according to Central Statistics Office data released on Thursday. The growth in manufacturing sector at 5.5 per cent is an indicative of steady industrial activity and reflecting the visible effect of various reform measures undertaken by the Government, said Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.
Consumer prices rose at a slower pace of 3.41 percent annually in December following a 3.63 percent rise in November.
Similarly, electricity generation grew at 8.9 per cent in November compared to a meagre 0.7 per cent a year ago. In the same period of a year ago, inflation was 5.61 percent.
A report said the 18.55 per cent is an increase of 0.07 percentage over the 18.48 per cent recorded in the month of November.
"Given the reduction in lending rates announced by several banks, we hope to see an increase in both consumption and investment which will hopefully have a positive impact on manufacturing growth in coming months".
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The jump in IIP in November 2016 compared to (-) 1.8 percent contraction in October a (-) 3.4 percent fall in November 2015, could be primarily due to base effect-a statistical phenomenon that makes even tiny changes look large.
Capital goods production increased by 15 per cent in November compared to a decline in production by 24.4 per cent earlier.
The IIP data revealed that among the six use-based classifications of the index, the output of consumer goods segment expanded by 5.6 per cent in November.
The consumer durables segment registered an nearly 10% growth in November, against a 0.6% growth a year ago.
During April - November, industrial production rose 0.4% compared to 3.8% during the corresponding period of a year ago.
Eggs became expensive by 6.41 per cent and the cost of spices rose by 6.06 per cent.
Consumer durables and consumer non-durables recorded growth of 9.8 per cent and 2.9 per cent respectively, with the overall growth in consumer goods being 5.6 per cent. Production was expected to rise 1.5 percent.