Inflation rises marginally to (-)1.14 pc

Inflation rose marginally to minus 1.14 per cent for the week ended June 13 against (-)1.61 per cent in the previous week even as prices of food items like pulses, cereals, and fruit and vegetables increased compared to last year.

This is the second week in a row when inflation remained in negative territory.

The wholesale price index stood at 11.80 per cent during the corresponding week a year ago. Low inflation is prompting banks to cut interest rates.

Yesterday, State Bank of India reduced the benchmark-lending rate by half a percentage point, leading to cheaper home, car and corporate loans. During the week, tea became expensive by two per cent and arhar by one per cent.

At the same time, fuel items like aviation turbine fuel surged by a whopping 12 per cent, light diesel oil by 10 per cent and furnace oil by three per cent.