Inflation has dropped down to five-year low of 2.38 per cent in September. The Wholesale Price Index based inflation was at 3.74 per cent in August. It was 7.05 per cent in September last year.

According to the data released by Commerce and Industry Ministry, it has been possible following decline in food prices, including vegetables. The data said, the food inflation fell to a nearly two-and-half year low of 3.52 percent. Food inflation is on Delcine since May.

The sharp drop in WPI inflation comes just at the back of retail inflation declining to a record low of 6.46 per cent in September.

Wholesale inflation in onion contracted to 58.12 per cent in September as compared to a contraction of 44.7 per cent in the previous month. While inflation in vegetable basket as a whole, shrunk to 14.98 per cent in September, rate of price rise in potato was 90.23 per cent from 61.61 per cent in the previous month.

The data further revealed that inflation in milk, eggs, meat and fish continued to decline in September as well. However, there was slight increase in the prices of fruits during the period.