Wholesale deflation, as measured by the Wholesale Price Index, reached 3.48 percent in May, up from 0.92 percent the previous month, according to data released by the government on Wednesday.
In the previous month, when prices fell for the first time in nearly three years, the WPI stood at a 34-month low of -1.92 percent (deflation). A negative WPI reading signifies deflation, indicating a decline in wholesale rates compared to the same period a year ago.
The most recent reading comes days after the Monetary Policy Committee, led by RBI Governor Shaktikanta Das, maintained the repo rate, the key interest rate at which the RBI lends money to commercial banks, unchanged at 6.5 percent following a bimonthly review.
The RBI predominantly monitors consumer inflation data for the purpose of formulating monetary policy.
