Wholesale inflation falls to 14-month low in May

WPI inflation lower than expected at 0.39%; food inflation falls to 1.72% in May

- Rhik Kundu

NEW DELHI: According to provisional data, India's wholesale price index-based inflation fell to a 14-month low of 0.39% in May, down from 0.85% in the previous month.

A favourable base aided the drop in the annual rate of inflation based on the All India Wholesale Price Index (WPI), with the food, non-food manufacturing, minerals, and fuel and power segments contributing to the dip in the headline print.

The wholesale price index (WPI), a proxy for producers' prices, stood at 2.25% in March, 2.38% in February and 2.51% in January, data released by the ministry of commerce and industry on Monday said.

The latest wholesale inflation came in below expectations, with prices rising less than the 0.8% projected by economists in a Reuters poll. Falling food prices drive moderation.