Industrial production grew at three-month high of 2.5 per cent in September while falling for the fourth straight month, retail inflation declined to 5.52 per cent in October, from 6.46 percent in September, helped by softening prices of food items. The growth in Industrial production is mainly on account of better mining and manufacturing output and larger off take of capital goods. The factory output, as measured by the Index of Industrial Production, IIP, grew at 2.7 per cent in the same month last year. According to the data released by the Central Statistics Office today, for August, it was revised to 0.48 per cent from the provisional estimates of 0.42 per cent released last month. The industrial production expansion was 4.3 per cent in June and 0.4 per cent in July this year. During the April-September period, IIP rose by 2.8 percent, as against 0.5 per cent in same period in the previous fiscal. Manufacturing output, which constitutes over 75 per cent of the index, grew by 2.5 per cent in September, compared to 1.4 per cent in the same month a year ago. For April-September, the sector saw an output growth of 2 per cent, compared to 0.2 per cent in the year-ago period. The mining sector production grew by 0.7 per cent in September as against of 3.6 per cent a year ago. The production of capital goods, a barometer of demand, grew by 11.6 per cent in September, against 6.6 per cent decline in same month of last year. Meanwhile, the decline in retail inflation is the lowest since the new series of data was introduced in January 2012. Overall food inflation based on the Consumer Price Index fell to 5.59 per cent in October, from 7.67 per cent in September. And retail prices of vegetables declined by 1.45 per cent, according official data released today. Inflation in protein rich items like eggs, fish and meat eased to 6.34 percent during the month.