Eurozone’s industrial output down by 0.2%: Economic wrap

Eurozone’s industrial output down by 0.2%: Economic wrap
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Updated 14 November 2021

Eurozone’s industrial output down by 0.2%: Economic wrap

Eurozone’s industrial output down by 0.2%: Economic wrap

RIYADH/CAIRO: The eurozone’s industrial production went down by a monthly rate of 0.2 percent, building on the last month’s drop of 1.7 percent, the Eurostat said. 

This was driven by a 0.7 percent decline in output of capital goods and a 0.2 percent fall in production of intermediate goods.

On an annual basis, the eurozone’s industrial production grew by 5.2 percent in September, up from the previous month’s 4.9 percent, according to data published by Eurostat.

India’s inflation 

India’s annual inflation rate reached 4.5 percent in October, up from 4.4 percent in September due to a slight rise in food prices, official data showed.  

Food price inflation rose to 0.85 percent from 0.68 percent in the previous month despite a decrease in the cost of vegetables by 19.4 percent. 

However, this was the fourth consecutive month in which inflation remained within the Reserve Bank of India’s target range of 2-6 percent, leaving room for the central bank to keep interest rates steady.

Prices in Argentina

On the other hand, Argentina’s yearly inflation rate declined slightly to a still high 52.1 percent in October, down from 52.5 percent in September, official data revealed. 

Meanwhile, the monthly rate was constant at 3.5 percent in October. That remained the highest monthly inflation since April. 

Interest rate 

As expected, Mexico’s central bank increased its benchmark policy rate by 25 bps to reach 5 percent. This is the country’s fourth interest rate hike in a row. 

The bank held that, despite the current shocks in inflation being transitory, they might still affect price formation and inflation. Hence, the bank decided to implement a contractionary monetary policy.

Industrial production
Industrial output in India rose by 3.1 percent year on year in September, easing from the previous month's 12 percent jump, India’s Ministry of Statistics and Program Implementation said.  This was driven by a slowdown in output of all sectors.

On a monthly basis, industrial output fell by 2.6 percent, after a 0.1 percent drop in August.

Meanwhile, Turkey’s industrial production growth recorded the lowest reading since September 2020. Industrial output in the country rose annually by 8.9 percent in September compared to 14 percent in the previous month, according to the Turkish Statistical Institute.

Output for capital and intermediate goods grew at slower rates contributing to the slowdown in industrial output growth. However, durable consumer goods jumped by a higher rate in September compared to August.