Zee Media Bureau
New Delhi: The annual rate of inflation, based on monthly Wholesale Price Index (WPI), stood at -2.40 percent for the month of June as compared to -2.36 percent for the previous month.
The Wholesale Price Index based inflation has been in the negative zone since November 2014. Inflation in June last year was 5.66 percent.
Retail inflation in June, as measured by the Consumer Price Index, surged to eight month high of 5.4 percent in June mainly due to costlier food items limiting the room for RBI to cut rates next month. The retail inflation measured on Consumer Price Index (CPI) was at 5.01 percent in May.
The rise in inflation, a key factor considered by the RBI in deciding the bi-monthly monetary policy, comes in the backdrop of slowdown in factory output.
The Index of Industrial Index (IIP) in May slowed to 2.7 percent from 5.6 percent year ago leading to demands of rate cut from the RBI in its next policy review on August 4.
With Agency Inputs
