16.1.15

WPI stays near Zero


Wholesale price inflation remained close to zero in December. The annual rate of inflation, based on monthly WPI, stood at 0.1% compared to 0.0% for the previous month and 6.4% during the corresponding month of the previous year. The government revised the data for October at 1.7% compared to the previously reported 1.8%.
While retail inflation has shown some signs of an upward trend on the back of certain food items in December, it has largely remained within the RBI's comfort zone. A combination of factors has helped calm inflationary pressures. The government has taken several measures to tame inflation, while a nearly 60% decline in global crude prices since June has comes as a major relief for policymakers.
Economists said the latest data provides evidence that the RBI may move to ease rates when it reviews monetary policy next month.

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