IIP shrinks by 2.4 per cent in July

New Delhi, Sep 12 (KNN) Industrial output in July dipped by 2.4 per cent dragged down by poor performance of mining and manufacturing sector raising hopes of a rate cut from RBI in its October policy.

Data released on Monday revealed that the mining sector grew by 2 per cent while the manufacturing output declined by 1.4 per cent.

The accumulative growth in the index of industrial production also shrank by 0.2 per cent between April and July.

The next RBI monetary policy review is on October 4, the first under the helm of Dr Patel, who took charge on September 4.

CSO in its statement said: "In terms of industries, twelve out of the twenty two industry groups in the manufacturing sector have shown negative growth during the month of July 2016 as compared to the corresponding month of the previous year."

Meanwhile, retail inflation eased to 5.05 per cent in August from 6.07 per cent in July. Consumer food price inflation also softened to 5.91 per cent in August from 8.35 per cent a month ago. (KNN Bureau)