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India's WPI-CPI Divergence Worrisome- FM

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India's Finance Minister Pranab Mukherjee expressed concerns over the continued divergence between the wholesale prices and retail prices and termed it as 'disturbing', reported the PTI.

The minister said that the negative inflation is a statistical advantage and agreed with Planning Commission's assessment that it would turn positive by year-end, the minister reportedly said at the Forum of Financial Writers.

Inflation based on the wholesale price index has been in the negative for the 12th consecutive week during the week ended August 22, mainly because the rate of price rise was too high at 12.76% in the year ago period.

In July, the inflation based on retail prices consumed by agricultural and rural laborers was close to 13% and for industrial workers it was close to 12%.

(Market News Provided by RTTNews)

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