Zee Media Bureau
New Delhi: Inflation measured by the Wholesale Price Index (WPI) dropped to zero percent in November compared to 1.77 percent in previous month.
The WPI inflation was at 7.52 percent in November 2013.
The sharp drop in WPI inflation, which fell for the sixth month in a row, came at the back of retail inflation declining to a record low of 4.38 percent in November.
The Reserve Bank in the recent past has focussed on retail inflation while deciding its monetary policy, but there have been no rate cut for many months.
RBI has been targeting a retail inflation of 8 percent by March 2015 and 6 percent by January 2016.
In its monetary policy review earlier this month, the Reserve Bank kept its key repo rate unchanged at 8 per cent and cash reserve ratio (CRR) at 4 percent.
"...If the current inflation momentum and changes in inflationary expectations continue, and fiscal developments are encouraging, a change in the monetary policy stance is likely early next year, including outside the policy review cycle," RBI Governor Raghuram Rajan had said.
With agency inputs
