Wholesale inflation falls to 0.9% in June

Wholesale inflation fell to 0(point)9 per cent in June this year as prices of food articles, including vegetables, fell.

The inflation figure is the lowest in at least eight months–since the availability of data for the new 2011-12 base year series.

Inflation based on the wholesale price index had stood at 2.17 per cent in May this year, and minus 0.09 per cent in June last year.

Government data released today showed that wholesale inflation in food articles stood at minus 3.47 per cent in June. Inflation in vegetables was minus 21.16 per cent, meaning that overall vegetable prices fell. Inflation in potatoes was minus 47.32 per cent in June.

Data earlier this week had showed that retail inflation eased to a record low of 1.54 per cent in June.

Digital transactions ‘leapfrogged

State Bank of India has said that India has leapfrogged three years of digitisation in just seven months post demonetisation and the government’s drive to promote use of debit and credit cards at point of sale or PoS terminals.

According to a SBI research report, the volume of digital transactions has crossed the 70,000 crore rupee level in last seven months. It informs that banks have installed 11.8 lakh additional POS terminals to facilitate this movement.

The report says that similar trends are observed in usage of pre-paid instruments including m-wallet, PPI cards and mobile banking.

The SBI Report claims that an increase of 10,000 crore rupees of transactions by credit and debit cards at PoS terminals will lead to around 1.1 percent decline in Consumer Price Index based inflation.

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