Inflation based on the Wholesale Price Index, WPI, fell to 4.7 per cent in May, driven mainly by declining prices of manufactured items, even as prices of food articles went up. The WPI-based inflation stood at 4.89 per cent in April. In May last year, it was 7.55 per cent.
As per official data released today, WPI inflation in the manufactured items category declined to 3.11 per cent in
May from 3.41 per cent in April. The non-food articles category, which include fibre, oil seeds and minerals, saw a sharp decline in inflation to 4.88 per cent, from 7.59 per cent in April. However, inflation in food articles category, which has a 14.34 per cent share in the WPI basket, rose to 8.25 per cent in May.
The rise in food inflation was on account of increase in prices of onions, vegetables, cereals and protein-based items. The inflation data would be closely watched by the
Reserve Bank while formulating its mid-quarter policy which
is scheduled on June 17.