As per official data, wholesale inflation measured by WPI index inched lower on the back of a decline in the price of manufactured goods as well as cheaper fuel though prices of food items continued to remain high.
For the month of April, WPI inflation came in at 3.07% in comparison to 3.18% in March and 3.62% in April of 2018.
Food articles inflation rose due to a sharp surge in vegetable prices which registered inflation of 40.65% in contrast of 28.13 in March. Also, food article inflation remained higher at 7.37%.
Though, there was weakening in manufactured items as well as fuel and power category with inflation recorded at 3.84% and 1.72%, respectively.
For the monetary policy decision, the RBI factors in CPI inflation which inched to a six month high of 2.92% due to a spike in food prices, including vegetables, meat, fish and eggs.