Wholesale inflation measured by WPI index for the month of May dropped to an almost 2-year low, hitting levels of 2.45% in comparison to 3.07% in April. For the month of March, the Ministry of Commerce and Industry has revised WPI inflation from 3.18 percent to 3.1%.
The core inflation for May came in at 1.2% as against 1.9% in the preceding month. Food inflation on a wholesale basis registered a growth to 5.1% in comparison to 4.95% in April. On the other hand, vegetable inflation dropped from 40.65% in April to 33.15% during the period under review.
Primary articles WPI inflation also slipped to 6.16% as against 6.5% in April.
Fuel and power inflation also dropped significantly from 3.84% in April to 0.98% in May.
Inflation in non-food articles jumped to 6.23% versus 5.23% in April.
Notably, retail inflation in May climbed to a 7-month high of 3.05% as kitchen items including vegetables, fish and meat became expensive.
On June 6, the RBI in its second bi-monthly MPC meet raised the inflation target to 3-3.1 percent from 2.9-3 percent for the H1FY20.