Inflation based on the wholesale price index fell to a five-month low of 2.17% in May, mainly because of a sharp drop in prices of vegetables. WPI inflation was 3.85% in April and (-)0.9% in May 2016. The wholesale price index (WPI) for the month is based on the new base year 2011-12, which was revised last month from 2004-05, with an aim to reflect the macroeconomic picture more accurately. The slowdown in wholesale inflation comes against the backdrop of retail inflation easing to a multi-year low of 2.18% in May. There was acceleration in prices of fuel and power (11.69 %) and manufactured products (2.55 %).

Source: Hindustan Times June 14, 2017 08:15 UTC