April's data is the lowest since November 2009 and much below what analyst expected.
The annual rate of inflation, based on monthly WPI, stood at 4.89% (provisional) for the month of April, 2013 (over April, 2012) as compared to 5.96% (provisional) for the previous month and 7.50% during the corresponding month of the previous year.
Commenting on the data, Rangarajan said the RBI will have room to cut interest rates further if inflation eases.
The index for 'Food Articles' group rose by 2.6 percent to 219.8 (provisional) from 214.3 (provisional) for the previous month due to higher price of fruits & vegetables (11%), masur (4%) and fish-marine, condiments & spices, urad and tea (1% each). However, the price of poultry chicken (7%) and barley, jowar, ragi, wheat, gram and egg (1% each) declined.
The index for 'Non-Food Articles' group rose by 1.4 percent to 209.7 (provisional) from 206.9 (provisional) for the previous month due to higher price of flowers (11%), soyabean (8%), groundnut seed and raw silk (5% each), fodder (2%) and copra, coir fibre, cotton seed, sunflower and mesta (1% each). However, the price of guar seed and linseed (4% each), raw rubber (3%) and raw cotton, castor seed, rape & mustard seed and gingelly seed (1% each) declined.
Declining inflation rate, may prompt the RBI to cut rates going forward in order to spur growth.