India's wholesale price index has fell 1.6 per cent in the 12 months to June 6, compared with the previous week's annual rise of 0.13 per cent. Indian price index has fell for the first time since December, 1978

 

The experts opine that negative inflation will give Indian Government scope to spend more in next month’s budget to spur economic growth. Annual inflation for the week ended April 11, was revised to 0.96 per cent from 0.26 per cent.
 
The wholesale price index rose to 232.7 points in the week ended June 6 from 232.6 a week earlier. - The annual inflation rate was 11.66 percent during the corresponding week of the previous year. 

 
According to business analysts, the decline in primary article prices this week is most vital factor. The high base effect will keep the WPI inflation in the negative zone for at least three months.
 
Further wholesale prices are expected to remain muted until September, but some economists opine that the country will not be dragged into a deflationary spiral. Prime Minister Manmohan Singh’s stunning electoral victory last month raised expectations that he will implement policies to promote growth. Finance Minister Pranab Mukherjee, due to unveil next year’s budget in New Delhi on July 6, has indicated more will be spent on roads, ports and a rural jobs programme to accelerate economic expansion.