New Delhi, August 14
Deflationary trends continued for
the ninth month in a row in July with wholesale inflation plunging to a
historic low of minus 4.05 per cent on cheaper vegetable and fuel, which may
prompt RBI to cut interest rate ahead of the September 29 policy meet.
The WPI number follows retail
inflation (CPI) data, which had slipped to a record low of 3.78 per cent in
July.
The overall wholesale price
index-based (WPI) inflation was (-)2.40 per cent in June, government data showed
today. It has been in the negative zone since November 2014. A year ago in July
2014, inflation was 5.41 per cent.
During the month, pulses, milk,
edible oil, egg, meat and fish turned dearer.
RBI Governor Raghuram Rajan after
the monetary policy announcement on August 4 had said the central bank may cut
interest rate even out of the policy cycle depending on how macroeconomic
indicators play out.
"We are waiting for
information. There was more need to move fast in the early stages of the
turnaround. We will take all information into account and decide whether at
times it warrants moving in between policy cycle or it does not," he had
said after the policy meet.
The RBI
mostly tracks the consumer price inflation for its policy decision, and its
next review is due on September 29. —PTI
NOTE;
THE AICPI-IW FOR JUNE,2015 WAS 6.0976% WHICH MAY COME DOWN TO 4.0268% IN JULY,2015.
EDT.