IIP, inflation numbers offer Centre respite amid rupee, fuel tantrums

The rate cuts in the GST on over 100 items from July 27 pulled down the inflation rate

The industrial output and consumer price index-based inflation numbers on Wednesday provided a breather to the Centre, facing flak for its alleged mishandling of the rupee and petroleum prices. 

Fuel inflation, however, continued unabated, rising to 8.47 per cent in August from 7.96 per cent in July. Though the growth rate in the Index of Industrial Production (IIP) marginally fell to 6.6 per cent in July from 6.8 per cent in June, it was at an elevated level and much higher than market expectations of 5 per cent. Manufacturing growth, which had risen in double digits in the GDP data, was