Annual rate of inflation based on WPI in August 2015 at -4.95%
Q. What was the annual rate of inflation based on WPI in August 2015, according to RBI?- Published on 16 Sep 15a. -4.95%
b. -4.96%
c. -4.97%
d. -4.98%
ANSWER: -4.95%
Wholesale prices dropped for the tenth consecutive month, while retail inflation remained at positive level, raising prospects of an interest rate cut when the Reserve Bank of India (RBI) reviews monetary policy. The annual rate of inflation, based on wholesale price index, stood at -4.95% in August, compared to -4.05% for the previous month and 3.85% during the corresponding month of the year 2014. Sharp slide in global crude oil prices and vegetable prices contributed significantly to the dip in wholesale price pressures.Retail inflation in August rose an annual 3.66% compared to the previous month's 3.69%, well below RBI's comfort level while food and beverages inflation stood at 2.9% in August, sharply below the double digit levels seen in the past.
However, prices of pulses and some vegetables remain issues of concern.Core wholesale inflation (excluding food and fuels) decelerated to 4.1% in August 2015 from 4.3% in July 2015 and thereby , continuing the momentum of decelerating core inflation. Both categories of inflation indicate that they are moderating and under control.
