New Delhi, June 12: Industry reported a 13.6 per cent growth in April, raising the possibility of rate hikes by the RBI to check inflation which is fuelled by consumer demand.

The rapid growth may make it difficult for the central bank to keep the lid on inflation at 5 per cent. The figures were released by the Central Statistical Organisation (CSO) today.

The April show was on the back of higher growth of consumer goods, which almost doubled to 17.7 per cent from the previous month.

There was huge demand for items such as furniture, washing machines and refrigerators. Furniture and fixtures production alone rose 92 per cent in the month.

The growth rate was, however, lower than the 14.5 per cent growth in March.

A tighter monetary policy adopted by the central bank saw interest rates moving upwards, dampening to an extent demand and investment. Economists expect industrial growth to slacken in the months ahead, as higher interest rates start impacting the economy.

“The growth has tapered down because the credit growth has come down after the RBI raised rates. But demand for consumer goods remained strong because of past lendings to people at lower rates,” said K. Raghuraman, executive director of Punjab National Bank.

Economists with the finance ministry said that not only rising interest rates but also slow growth in overseas demand were affecting industry.

Electricity production, which is showing a steady improvement, registered a growth rate of 8.7 per cent.

The mining sector, however, failed to deliver. It grew by 3.4 per cent in April.

Industrial production grew by an average rate of 11.2 per cent in April-March 2006-07.