India’s wholesale inflation eased from a three-decade high in June, amid some softening in prices of global commodities including crude and edible oils that are key imports for the nation.

Wholesale prices rose 15.18% in June from a year earlier, data released by the Commerce Ministry showed Thursday. That compares to the median estimate for a 15.6% gain in a Bloomberg survey of economists.

Separate data Tuesday showed consumer price gains were steady at about 7% last month, prompting economists to discount the need for large hikes by the Reserve Bank of India in a world embracing 100 basis-point moves.

While the moderation in global commodity prices has given some comfort, the threat of a US downturn is the latest risk confronting India amid a weakening rupee. The government and the central bank have taken a raft of measures to cushion the impact of rupee’s fall.

Source:
courtesy of BLOOMBERG

by Vrishti Beniwal

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