Consumer Inflation Eases To 3.31% In October
Consumer inflation stood at 3.31 per cent in October, government data showed on Monday. This was lower than estimates of 3.67 per cent by economists in a poll conducted by news agency Reuters, and within the Reserve Bank of India's medium-term target. October's consumer inflation reading marked a third straight month in which retail inflation - determined by the Consumer Price Index (CPI) - stood below the central bank's medium-term goal of 4 per cent. Consumer inflation in September stood at a final 3.70 per cent, the Ministry of Statistics said in its official statement.
Monday's data 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.
Stock markets finished Monday's session with a loss of nearly 1 per cent, as investors turned cautious ahead of release of key macroeconomic data. The Sensex shed 345 points to end at 34,812 after a choppy session, whereas the NSE Nifty settled at 10,482, down 103 points from the previous close, amid selling in all sectors barring IT.
Separate data, also released on Monday, showed growth in industrial production - or factory activity - stood at 4.5 per cent in September, which better than estimates of 4.3 per cent - the same pace as the previous month, according to the median forecast of 24 economists in a poll by Reuters.