WPI-based inflation for June stands at -2.4%

The Wholesale Price Index (WPI) -based inflation continued to be in the negative zone in June at -2.4 per cent, official data showed on Monday. This is the  eighth straight decline factored in primarily on weak fuel prices.

It has been in the negative zone since November 2014. A year ago in June 2014, inflation was 5.66 per cent. The data come a day after the retail inflation for the same month rose to an 8-month high of 5.4 per cent.

While Fuel, power group inflation at -10.03 per cent vs -10.51 per cent (m-o-m), primary articles inflation stood at -0.76 per cent Vs -0.77 per cent (m-o-m), manufactured products inflation at -0.77 per cent Vs -0.64 per cent (m-o-m) and most importantly food articles inflation stood at 2.88 per cent Vs 3.8 per cent (m-o-m)

Among articles of consumption by the masses, the annual inflation for pulses was whopping 33.67 per cent in June, followed by 18.54 per cent for onions, 7.47 per cent for fruits and 5.18 percent for milk. But prices fell 52.40 per cent for potatoes and and 2.25 per cent for eggs, meat and fish.

Experts said the conflicting data would make it difficult to predict the next course of action for RBI, which has cut its rates three times so far this year. RBI mostly tracks the consumer price inflation for its monetary policy decision, and its next review is due on August 4. The central bank has said it would watch out for the data, including inflation, and the monsoon progress before any change in its policy rates.