A broad-based softening of prices during October helped the wholesale price index (WPI) fall below the 2% mark for the first time in over five years and raised market expectations of a rate cut by the RBI soon.With prices of food items rising 2.5%, fuel prices up just 0.4% and manufactured product at 2.4% last month, the WPI increase was restricted to 1.8% over last year.
Earlier this week, consumer inflation too showed a continuing downward trend and fell below the 6% mark, a level set by the RBI for January 2016. “With crude prices down, this trend of lower food prices will continue,“ finance minister Arun Jaitley said.
The falling inflation rate also pushed up the sensex by 106 points to 28,047, a new closing high. BSE's market cap too scaled a new high at Rs.98.44 lakh crore.
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