The Wholesale Price Inflation [WPI] eased to a near five-year low of 3.74 per cent in August which eased the pressured on NDA government. Decline in fuel prices led to this figures and analysts predict that inflation will come down more as government is considering to cut the diesel prices.

This inflation results could have impact on interest rates as Reserve Bank of India policy meet schedule at September 30th. If RBI decreases the Repo Rate then, Home and Car loan prices will also come down. Ironically, this inflation figures did not impress the stock markets too and they are still running in negatives.

(AW: Vamshi)