Industrial production once again slumped more than expected with the December IIP figure at a surprisingly low -0.6 per cent, as against a consensus estimate of 1 per cent. Manufacturing growth for the month of December came in at -0.7 per cent.
Intermediate December growth has come in at - 0.1 per cent, while consumer goods was down -4.2 per cent in comparison to November. Consumer non durable growth for December has been -1.4 per cent.
The drop in industrial production will now add pressure on the RBI to cut interest rates. However, the consumer price inflation is likely to make a case for a rate cut extremely difficult.