The inventory system now includes a crafting feature.
This feature is currently useless as there are no craftable items available yet, however such items will be added in the upcoming updates.

To start crafting, open up your inventory and click the switch box which is located in the top right corner.
Select the ingredients category and then select a combination of ingredients that form a certain crafting recipe.
When a valid combination is selected, the resulting item will appear on the screen with some of its information. The "No result" label means that the selected combination is invalid or that no combination is selected.
Lastly, press the 'R' key to craft the item.