biz WPI inflation negative for 8th month.
WHOLESALE price index ( WPI)- based inflation slipped further to (-) 2.4 per cent in June on the back of cheaper vegetable and fuel prices marking the eighth consecutive month of declining prices, official figures released on Tuesday showed.
Inflation based on wholesale prices was (-) 2.36 per cent in May and 5.66 per cent in June 2014. According to the WPI data, rate of price rise eased for food items, especially wheat, fruits and milk in the wholesale market. Wholesale inflation has been in the negative zone since November 2014 prompting India Inc to step up its demand for another rate cut by the Reserve Bank of India ( RBI) to spur economic growth.
RBI tracks retail inflation for its monetary policy review, but the Confederation of Indian Industry and the Federation of Indian Chambers of Commerce and Industry said there is a case for a rate cut with the wholesale prices showing a continuing deflationary trend.
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