India inflation eases more than expected, industrial output up more

India's consumer price inflation eased more-than-expected in July, while industrial production continued to expand strongly in June, though at a slower rate than in the prior month, data from the National Statistical Office showed on Friday.
Consumer price inflation moderated to 6.71% in July from 7.01% in June. Economists had forecast the rate to slow to 6.78%.
In the same period last year, inflation was 5.59%.
Food price inflation also eased to 6.75% from 7.75% in the previous month.
Fuel and light prices rose sharply by 11.76% annually in July, and clothing and footwear prices moved up 9.91%.
Prices for food and non-alcoholic beverages were 6.71% more expensive compared to last year, and housing costs showed an increase of 3.90%.
Month-on-month, consumer prices advanced 0.46%, while food prices logged a nominal rise of 0.06%. Separate data from the statistical office revealed that annual industrial production growth slowed to 12.3% in June from 19.6% in May.
This was also higher than the 10.7% expansion predicted by economists.
The overall annual increase was largely contributed by a 16.4% surge in electricity output. This was followed by a 12.5 gain in the manufacturing sector.
The mining sector also recorded a positive growth of 7.5% in output.In the April to June period, total industrial production grew 12.7% from the same period last year, data showed.