15 Dec, 2014 8:39p.m.

Wholesale Price Index based inflation dips to zero

The Wholesale Price Index (WPI) based inflation for the month of November dropped to zero. The figure was 1.77 percent in October and 7.52 percent in the previous year corresponding period. The dip is attributed to the continuous decline in fuel and food prices.

This may lead to the possibility of India heading for a deflation if inflation rate enters the negative zone starting December.

With WPI inflation touching 0%, RBI is likely to cut rates to boost growth. The RBI had maintained a status quo in interest rate since January. The RBI factors in retail inflation while formulating its monetary policy.

As per the data released by government on Monday, food inflation fell by 0.39 percent month on month with vegetables contributing the most. Year-on-year, the vegetable prices slipped 30 percent owing to a high base effect. Manufacturing products inflation fell to 2.04 percent from 2.43 percent in October. The fuel and power group, which has 15 percent weight-age on the index, declined by a whopping 5.4 percent month-on-month due to lower crude prices

Whatsapp Share Button

🏠 Go to StaffCorner.com Home Page





Latest in Important News
News 🕑 05 Jul,19 1:13p.m.
Latest in Other News Sections
RBI cuts repo rates to 6.25. Loans set to get cheaper 🕑 04 Apr,19 12:42p.m.
Sree Chitra Tirunal Institute develops intravenous cancer drug 🕑 26 Mar,19 9:29p.m.
CPAO FAQ For the Beneficiaries Of NPS- Additional Relief Scheme 🕑 13 Mar,19 11:06p.m.
'One Nation One Card' mobility card launched 🕑 05 Mar,19 1:47p.m.
PFRDA working on minimum assured returns for NPS subscribers 🕑 24 Feb,19 1:58p.m.
EPFO's 8.65% interest rate for FY19 is actually equivalent to 13.5%. 🕑 24 Feb,19 11a.m.
EPFO to offer 8.65%, its 1st hike in 4 years 🕑 22 Feb,19 10:51a.m.
RBI cuts repo rate by 25bps. EMIs likely to get cheaper 🕑 07 Feb,19 1:02p.m.
Budget 2019 expectations : IT exemption limit likely to be hiked to Rs 5 lakh 🕑 17 Jan,19 9:29p.m.
Researchers develop plants that can remove cancer-causing pollutants 🕑 27 Dec,18 12:59p.m.