New Delhi: Wholesale price-based inflation slipped to a 22-month low of 2.45% in May helped by falling prices of food articles, fuel and power items, according to an official data released on Friday.
The Wholesale Price Index (WPI)-based inflation was at 3.07% in April. It was 4.78% in May 2018.
Inflation in food articles basket was 6.99%, down from 7.37% in April.
However, onion prices spiked during the month with inflation at 15.89%, against (-) 3.43% in April.
Vegetables inflation eased to 33.15% in May, down from 40.65% in the previous month. Inflation in potato was (-) 23.36%, against (-) 17.15% in April.
WPI inflation in May is the lowest in 22 months, since July 2017, when it was at 1.88%. Inflation in 'fuel and power' category cooled to 0.98%, from 3.84% last month. Manufactured items, too, saw a decline in prices with inflation at 1.28% in May, against 1.72% in April.
WPI inflation data for March has been revised downwards to 3.10%, from provisional 3.18%.
Data released earlier this week showed retail inflation spiked to a 7-month high of 3.05% in May on costlier vegetables, and protein-rich items.
The Reserve Bank, which mainly factors in retail inflation for monetary policy decision, on June 6, lowered its benchmark lending rate to a nearly 9-year low of 5.75%, even as it upped its inflation projection to 3-3.1% for the first half of 2019-20.
Flagging uncertain monsoon, unseasonal spike in vegetable prices, crude oil prices, financial market volatility and fiscal scenario as risks to inflation, the RBI projected upward bias in food inflation in near term.
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