New Delhi: Wholesale inflation for the month of November eased to 0% year-on-year, led by a drop in fuel prices.
Economists polled had expected WPI inflation to ease to 1.41% against 1.77 per cent in October.
Fuel inflation was -4.9% in November reflecting the sharp plunge in global crude prices. Brent prices have dropped over 40% near $60 per barrel since June.
The Reserve Bank monitors the consumer price inflation to set interest rates. Though CPI inflation has also been coming down, it is likely to inch up again as favourable base effects wear off and the pass through of weaker oil prices is limited due to the fuel tax hike, analysts say.
CPI or retail inflation eased to a record low of 4.38% from 5.52% in October.
The continued slide in inflation is likely to increase the clamour for rate cuts at a time when industrial production for October declined 4.2% year-on-year against consensus expectation of a 2.3% rise.