June WPI inflation drops to 11-month low as food prices ease

June WPI at 0.90%, down from 2.17 % in May, fuel inflation continues to decline for 5th month

Inflation based on the Wholesale Price Index (WPI) slipped to a 11-month low of 0.9 per cent in June, as food inflation remained negative and prices of manufactured items rose at their weakest pace in 11 months.

The slowing in wholesale inflation comes against the backdrop of retail inflation easing to a record low of 1.54 per cent in June. As a result, expectations from the Reserve Bank of India (RBI) to reduce its lending rate ('repo') at its next Monetary Policy Committee meeting in early August, has again peaked from economists and business alike.

The WPI has been on a downward trend since