WPI inflation unchanged at 1.08% in Aug, gives RBI room for rate cut

Inflation in food articles rose to 7.67 per cent during the month as against 6.15 per cent in July mainly on account of rise in prices of vegetables and protein-rich items

Wholesale price based inflation was unchanged at 1.08 per cent in August, reinforcing the expectation of a rate cut by the RBI in the October policy review.

Although the RBI takes into account the consumer price index based inflation while deciding its monetary policy stance, the decline in core inflation has strengthened the case for a rate cut, said an expert.

According to the data released by the Ministry of Commerce & Industry on Monday, the increase in prices of certain food items was partially neutralised by static prices of manufactured goods during August 2019.

The WPI (wholesale price index)