India wholesale inflation tumbles to five-year low
NEW DELHI: India posted better inflation data for a second straight day, stirring hopes it is making headway in taming prices and will be able to cut interest rates to spur a sluggish economy.
Wholesale inflation slowed to a five-year low of 2.38 percent last month, its weakest since October 2009, commerce ministry data showed.
The encouraging figures came a day after the release of figures showing that the more widely tracked consumer price inflation fell to 6.46 percent in September.
The bank, which kept its trend-setting lending rate on hold at a steep eight percent last week, has set a goal of whittling down consumer inflation to six percent by January 2016.
Capital Economics Asia economist Mark Williams said a rate reduction could come late this calendar year if inflation news remained positive.