Tumbling prices in India boost expectations of more rate cuts

New Delhi

INDIA'S wholesale prices tumbled for a 10th straight month in August, pressured by falling fuel costs and bolstering prospects of an interest rate cut by the central bank later this month.

The wholesale price index (WPI) fell an annual 4.95 per cent last month compared with a 4.4 per cent year-on-year decline forecast by economists in a Reuters poll and a provisional 4.05 per cent slide in July.

With price pressures at record lows, expectations are building that the Reserve Bank of India will lower borrowing costs by at least 25 basis points (bps) at i…