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Tumbling wholesale prices in India boost expectations for more rate cuts


Tumbling wholesale prices in India boost expectations for more rate cuts

New Delhi/Nagpur /Surat, Sept 15 (ANI): India's wholesale prices tumbled for a tenth straight month in August, pressured by falling fuel costs government data showed, bolstering prospects of an interest rate cut by the Reserve Bank later this month. The wholesale price index (WPI) fell an annual 4.95 percent last month compared with a 4.40 percent year-on-year decline forecast by economists and a provisional 4.05 percent slide in July.

The wholesale fuel prices tumbled 16.50 percent from a year ago, while food prices dropped 1.13 percent year-on-year. Prices of manufactured goods declined 1.92 percent on year last month.

With price pressures at record lows, expectations are building that the Reserve Bank of India (RBI) will lower borrowing costs by at least 25 basis points (bps) at its next policy review on September 29, after three cuts earlier this year, to spur economic growth.

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