India's August inflation rate accelerated to the fastest since March, exceeding expectations ahead of the central bank's policy review in October.
The spiralling costs of mobile phones aside, the United Kingdom consumer price index is expected to see a modest increase in August, with headline inflation having surprised by holding steady at 2.6% in July, and prices then actually falling month-on-month by 0.1%. Industrial output contracted 0.2 percent in June.
Consumer food price inflation, a metric to gauge changes in monthly kitchen costs, continued to remain soft, with prices showing gradual improvement at 1.52 percent from (-) 0.36 percent in July as compared with 5.91 percent in the same period past year. Meanwhile, the Index of Industrial Production grew by 1.2% in July, after falling to -0.2% in June, reported Mint. Mining and electricity sectors however grew at robust 4.8% and 6.5% respectively in July.
The manufacturing sector grew by mere 0.1 per cent in July compared to 5.3 per cent in the same period of 2016.
The unemployment rate dropped over the period easing back by 0.2 per cent to 4.3 per cent- the lowest level since 1975
In contrast, the output of intermediate goods declined by (-) 1.8 per cent, consumer durables by (-) 1.3 per cent and capital goods by (-) 1 per cent.
As per the ministry's data, retail inflation on a YoY basis edged higher due to a rise in the prices of food items like vegetables, cereals, milk-based products, meat and fish.
According to figures from the Office for National Statistics (ONS), fashion costs rose at an annual rate of 4.6% in August.
"Andy Haldane may now choose to vote for a hike, suggesting a 6-3 split on the MPC is now more likely than before with confirmed hawks Ian McCafferty and Michael Saunders likely to vote for a hike".
"As the consumption demand rises during festive season and investment too due to government measures taken in the last few months, we can expect growth to pick up in coming months", Baru added.