India\\\'s industrial growth slows in June, inflation a worry

NEW DELHI, Aug 12 (Reuters): India's industrial output slowed in June, though expanding for a third straight month, its best run since last September, boosting Asia's third-largest economy as it struggles to emerge from the longest spell of sub-par growth in a quarter-century.
Annual growth in output from mines, utilities and factories slowed to 3.4 per cent in June from a upwardly revised 5.0 per cent a month earlier, government data showed on Tuesday.
The data may disappoint Prime Minister Narendra Modi who won the strongest electoral mandate in 30 years in May on a promise to revive growth and control inflation.
Retail inflation, tracked by the central bank to set interest rate policy, edged up to 7.96 per cent in July from 7.31 per cent a month earlier, other data released on Tuesday showed. It had eased below 8 per cent for the first time in 29 months in June.
Analysts said good rains in July in parts of the country could ease some pressure on food prices in coming months.
"We expect the progress in rains and sowings to ease some pressure on food prices in the months ahead, the RBI is likely to remain cautious and keep the policy rate unchanged," Upasna Bhardwaj, an economist at ING Vysya Bank, Mumbai, said referring to the central bank, the Reserve Bank of India.
Consumer food price inflation, under a new series published by the government, jumped in July to 9.36 per cent from 7.97 per cent the previous month.