Retail inflation climbs in August, factory output stays sluggish
india's consumer inflation rate rose to a five-month high in August, while factory output remained sluggish, government data showed on Tuesday, suggesting the broader economy has yet to recover from the hit it took from the demonetisation decision on November 8 last year. At 3.36% in August, the consumer inflation rate remains moderate, but retail prices are seen rising as demand picks up ahead of the festive season and food prices spike because of drought-like situation in many states. The rise in August was higher than the 3.20% forecast by economists in a Reuters poll. Inflation rose to 2.36% in July, after falling for three straight months. The faster-than-expected rise in inflation has a bearing on the Reserve Bank of India, which is being nudged to lower interest rates in order to revive investment and growth that have gone sluggish in recent quarters.