WPI inflation slows to 5-month low of 6.16% in December
Zee Media Bureau
New Delhi: Inflation based on Wholesale Price Index (WPI) declined to a 5-month low of 6.16 percent for the month of December as compared to 7.52 percent in November.
WPI inflation stood at 7.31 percent during the corresponding month of the previous year.
Build up inflation rate in the financial year so far (April-December), was 5.35 percent compared to a build up rate of 4.84 percent in the corresponding period of the previous year.
Some moderation in vegetable and fruit prices also eased December retail inflation to three-month low of 9.87 percent, giving the Reserve Bank of India more leeway to manage interest rates.
The Reserve Bank, scheduled to announce its monetary policy review on January 28, has kept policy rates unchanged expecting that inflation, both consumer and retail, would ease.
The key policy rate (repo) was hiked twice between September and November to check inflation.
With industrial growth slowing to six-month low in November, there has been a strong demand from the industry for a reduction in policy rates.