After contracting for two straight months, industrial production recorded a growth of 2.6 per cent in July this year on account of improved performance of manufacturing and power sectors. According to data released by the Central Statistical Organisation-CSO, Factory output measured in terms of the Index of Industrial Production (IIP) had contracted 0.1 per cent in July last year. During April-July this year, factory output contraction remained at 0.2 per cent. The manufacturing sector which constitutes over 75 per cent of the index, grew by 3 per cent in July compared to zero growth in the month a year earlier. During April-July,the sector registerred a decline of 0.2 per cent compared with a contraction of 0.6 per cent in the period last year. Power generation increased by 5.2 per cent in July as against a growth of 2.8 per cent in same month in 2012. Power generation in the April-July grew 3.9 per cent compared with an expansion of 5.5 per cent in same period last year. The mining output declined 2.3 per cent in July, compared with a dip of 3.5 per centduring the same period of last year. According to data, among the 22 industry groups in the manufacturing sector, 11 recorded positive growth in July this year. Meanwhile, retail inflation eased slightly to 9.52 per cent in August over the previous month following softening in prices of almost all commodities, except vegetables. The retail inflation measured on the Consumer Price Index was at 9.64 per cent in July.