The latest government data indicates a significant decline in wholesale price inflation, which has dropped to 0.39% in May. This easing trend is attributed to falling prices of food articles, manufactured products, and fuel.
In April, WPI-based inflation was documented at 0.85%, highlighting a marked decrease. The industry ministry attributes this inflation change to rising prices in specific sectors including food manufacturing, chemicals, and transport equipment.
While manufactured products saw inflation, food, notably vegetables, experienced significant deflation. The Reserve Bank of India, considering these factors, reduced policy interest rates by 0.50% to accommodate the easing inflation.
(With inputs from agencies.)
