India's consumer inflation slowed to a new low in June as food prices fell for the second month in a row, government data showed Wednesday.
The benchmark consumer-price index rose 1.54% from a year earlier, slower than May's 2.18% increase. The reading is the lowest since the index was introduced in 2012.
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The weak reading, which is significantly below the Reserve Bank of India's 4% medium term term, would strengthen the case for a rate cut by the central bank at its next monetary policy review in August.
The RBI at its last meeting in June slashed its inflation forecasts, acknowledging that price pressures were weaker-than-anticipated, but maintained a 'neutral' policy stance amid concerns that inflation may rebound later this year.
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(END) Dow Jones Newswires
July 12, 2017 08:20 ET (12:20 GMT)