Indian wholesale prices contracted sharply in June

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Indian wholesale prices continued to contract in June with the government reporting an annual decline of 2.4%.

The figure, below the upwardly revised 2.36% decline recorded in May, missed expectations for a smaller decline of 2.2%.

Food inflation grew by 2.88% from a year earlier, the lowest level seen since November 2014, while fuel inflation, having fallen by 14.8% in the year to February, continued its rebound with an annual decline of 10.03% reported.

Last month the Reserve Bank of India, having cut interest rates, suggested risks to their inflation path forecasts were tilted to the upside. Based on this data, those risks were yet to evolve in June.

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