New Delhi: Wholesale inflation in April cooled further to -2.65%, compared to 5.55% in the same period last year, government data showedon Thursday. In March, wholesale price index (WPI) stood at -2.33%.
This is the sixth straight fall in WPI inflation, mainly on the back of plunging oil prices.
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Although, the Reserve Bank of India (RBI) mainly monitors inflation based on consumer prices, the positive wholesale data comes as a shot in the arm for India Inc, which has been making a case for further rate cuts by the central bank.
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Earlier this week, data showed retail inflation cooled to a four-month low in April on slower annual increases in food costs and industrial output growth slipped to a five-month low in March, boosting odds for an interest rate cut by the central bank next month.
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The rate of inflation in food articles stood at 5.73% in April as against 6.31% in March, 7.83% in February and 8% in January.Â
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The data released by Ministry of Commerce and Industry said, “The index for ‘Food Articles’ group rose by 1.3% due to higher price of fruits & vegetables, gram and tea (4% each), poultry chicken and urad (3% each), arhar, ragi and fish-marine (2% each) and bajra and jowar (1% each).” Â
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With inflation staying well below the 6% upper end of the RBI’s target range and growth momentum weakening, analysts are expecting the central bank to lower lending rates for a third time this year.