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. Experts said, 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.
According to the data released on Monday by the Ministry of Commerce & Industry, the increase in prices of certain food items was partially neutralized by static prices of manufactured goods during August 2019.
The Wholesale Price Index based inflation was 1.08 per cent in July and 4.62 per cent in August last year. 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.