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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