The Central Statistics Office (CSO) also revised downwards the August inflation to 3.28 per cent from 3.36 per cent.
According to data released by the government, the retail inflation rate for the month of August stood at 3.36 per cent.
Retail inflation for the month of September remained flat at 3.28 per cent, after the August figure was revised to 3.28 per cent, government data showed on Thursday.
The International Monetary Fund (IMF) on Tuesday also cut its growth forecast for the Indian economy by half a percentage point to 6.7% for 2017-18, blaming the lingering disruptions caused by demonetisation of high value currencies past year and the roll out of the GST.More news: Hamas Says Deal Reached in Palestinian Reconciliation
Factory output measured by the index of industrial production (IIP) is the closest approximation for measuring economic activity in the country's business landscape. She added, "Encouragingly, the sequential improvement in industrial growth in August 2017 was broad-based, led by all three sectors (mining, manufacturing and electricity) and five of the six use-based industries (except infrastructure/construction goods)".
RBI in its policy review meet on 4 October, kept benchmark interest rate unchanged on fears of rising inflation while lowering growth forecast to 6.7% for the current fiscal.
During April 2017-August 2017 period IIP grew at 2.2%, down from 5.9% in the same period in 2016-17.
In terms of industries, 10 out of 23 industry groups in the manufacturing sector showed positive growth during August 2017. The September CPI food inflation is at 1.25 per cent, against 1.52 per cent in August, while the CPI fuel, light inflation stands at 5.56 per cent, against 4.94 per cent in August.