Monday 15 December 2014

India November Inflation Hits Zero Level

India’s November inflation hit zero level, the lowest in about five and half years, due to declining prices of vegetables and fuel items, exerting pressure on RBI to cut rates to boost growth.

The Wholesale Price Index (WPI) based inflation was at 1.77 percent in October and 7.52 percent in November 2013.

The WPI inflation remained flat mainly on account of falling prices of vegetables, especially onion, edible oil, petrol and diesel.

In view of the moderation in WPI inflation, which has been on declining trajectory for six months, the industry has stepped up its demand for a rate cut.

The Reserve Bank has maintained a status quo in interest rate since January. The RBI factors in retail inflation while formulating its monetary policy.

Food inflation, which is on decline since May, fell to nearly three year low of 0.63 percent. Inflation in fuel and power segment fell 4.91 percent, the lowest level since 2009.


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