WPI inflation remained in negative territory for the seventh month in May, registering a decline of 2.36% on account of subdued prices of food items, fuel and manufactured goods. In future, however, the price situation will depend on the progress of monsoon, experts said. The wholesale price index(WPI) based inflation was 2.65% in April. It has been in the negative zone since November.Inflation in May 2014 was 6.18%.
The lower inflation comes amid a forecast of deficient monsoon this year. In contrast to the IMD's forecast of 12% deficient rainfall, the onset of monsoon has been reasonably strong so far.The CPI inflation had inched up marginally in May to over 5% from 4.87% in the previous month.
According to the WPI data released by the government, vegetable inflation was 5.5%, with potato prices falling by about 52%. Protein-rich items like eggs, meat and fish, too, were cheaper in May as compared to the previous month, and so were milk, fruits, rice and cereals. Overall, food inflation was 3.8% -much lower than the previous few months.
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