WPI inflation at 1.1% rekindles rate cut expectation

NEW DELHI: Wholesale price based inflation was unchanged at 1.1% in August, reinforcing the expectation of a rate cut by the RBI in the October policy review.
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, said an expert.Inflation in food articles rose to 7.7% during the month as against 6.2% in July.