India wholesale prices drop 2.06pc in Feb

India's wholesale inflation fell a sharper-than-expected 2.06 percent in February, the fourth straight drop, as global oil prices sit at multi-year lows, data showed Monday.

The fall in the Wholesale Price Index (WPI), the inflation measure with the biggest basket of goods, was greater than a 0.8 percent drop predicted by a Bloomberg survey and will fuel talk of another interest rate cut.

Prime Minister Narendra Modi's right-wing government had earlier revised the November fall in WPI inflation to 0.17 percent.

The latest figures show food and fuel prices dropped in February, good news for millions of Indians living in chronic poverty who are badly affected by any sharp changes in both categories.

"My sense is that the Reserve Bank of India (RBI) will take this chance and cut 25 basis points in April," said Ashutosh Datar, economist at IIFL Institutional Equities in Mumbai.

The RBI has made two unscheduled cuts this year on easing inflation in a bid to boost business borrowing and assist growth of Asia's third largest economy.