WPI Inflation For Feb Drops To -2.06%

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The Whole Sale Price Index for the month of Feb 2015, fell sharper then expected at -2.06% (provisional) for the month of February, 2015 (over February, 2014) as compared to -0.39% (provisional) for the month of Jan 2015.

WPI Inflation For Feb Drops To -2.06%
The primary article inflation declined by 1.9 per cent. Food and food group saw a decline led by items like egg, fruits & vegetables and tea, moong and Ragi. Interestingly, the price of mutton and fish-inland increased over the period under review.

The index for fuel and power declined by 4.1 per cent and was the prime reason for decline in the WPI Inflation. The index for manufactured goods declined marginally by 0.3 per cent.

Today's decline in WPI inflation comes on the back of an increase in the CPI inflation. Economists say that the RBI may not attach much importance to the WPI inflation, while cutting interest rates, as it has benchmarked its interest rates again the CPI.

The CPI inflation rose to 5.46 per cent for the month of Feb, dashing all hopes of an interest rate cut in the month of April.  Analysts say the RBI may have to hold interest rates steady going forward, given the rise in CPI inflation.


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