Declining prices of manufactured goods helped inflation based on the Wholesale Price Index, WPI, fall to a three-and-a-half year low of 4.7 per cent in May this year. WPI inflation has now fallen for the fourth straight month.

WPI inflation had stood at 4.89 per cent in April this year, and at 7.55 per cent in May last year.

As per official data released PI 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 includes fibres, oil seeds and minerals, saw inflation fall sharply to 4.88 per cent, from 7.59 per cent in April.

But inflation in the food articles category rose to 8.25 per cent in May, from 6.08 per cent in April.
The rise in food inflation was on account of increase in prices of onions, vegetables, cereals and protein-based items.