Zee Media Bureau
New Delhi: India`s wholesale price inflation (WPI) in June eased to a four-month low of 5.43 percent while food inflation eased marginally in June at 8.14 percent as compared to 9.5 percent previous month, government data showed on Monday.
The April wholesale price inflation (WPI) inflation has also been revised to 5.55% versus 5.20% (provisional).
However the growing risk that drought will shrivel summer crops could encourage the Reserve Bank of India to keep interest rates on hold.
Presenting his first budget last week, Finance Minister Arun Jaitley vowed to keep the fiscal deficit at 4.1 percent of gross domestic product in this fiscal year, while allocating more funds to ease inflationary pressures.
An RBI panel has recommended bringing down consumer price index (CPI) inflation to around 8 percent by the end of January 2015 and to 6 percent by the end of the following year.
India's Economic growth has been stuck below 5 percent for two years - the longest slowdown in more than a quarter of a century. The economy is expected to grow slightly above 5 percent in this fiscal year to March 2015.
With Agency Inputs
