India's consumer price inflation eased more than expected in August, data published by the National Statistical Office showed on Monday.
Underpinned by robust growth in mining and electricity, industrial production growth accelerated more-than-expected in July.
The consumer price index posted an annual increase of 6.83 percent in August, slower than the 7.44 percent increase in July. In the same period last year, inflation stood at 7.00 percent.
Inflation was expected to ease to 7.00 percent in August.
Nonetheless, inflation remained above the central bank's tolerance band of 2-6 percent for the second straight month.
For the current financial year, the Reserve Bank of India sees consumer price inflation at 5.4 percent.
Food price inflation weakened to 9.94 percent in August from 11.51 percent a year ago, data showed today.
On a monthly basis, consumer prices were down 0.05 percent and food prices slid 0.67 percent in August.
Another official data showed that the annual increase in industrial production accelerated to 5.7 percent in July from 3.8 percent in June. The expected growth rate was 4.8 percent.
All three sectors posted growth in July with mining registering a double-digit growth of 10.7 percent. At the same time, electricity and manufacturing grew 8.0 percent and 4.6 percent, respectively.
