New Delhi, June 21 -- India's factory output picked up in April to hit a six-month high, while retail inflation accelerated at the fastest pace in seven months in May, but still within the central bank's tolerance level and leaving scope for more rate cuts. Data released by the National Statistical Office showed index of industrial production (IIP) expanded at 3.4% in April from 0.3% a month ago, while retail inflation quickened to 3.05% in May from 2.99% in the previous month. Analysts, however, said it is too early to celebrate the recovery in factory output given the inherent volatility in some of the components such as capital goods, which turned positive in April at 2.5% after a gap of four months. Madan Sabnavis, chief economist at CA...