<p>Easing prices of fuel, food items and manufactured goods kept inflation in the negative zone for the seventh consecutive month in May, although prices fell at a slower rate of (-)2.36 per cent as against the previous month.<br /><br /></p>.<p>The Wholesale Price Index (WPI) based inflation was (-)2.65 per cent in April. It has been in the negative zone since November 2014.<br /><br />Inflation in May last year was 6.18 per cent.<br /><br />The lower inflation comes amid a forecast of deficient monsoon this year.<br />As per the government data released today, vegetable inflation was (-)5.5 per cent, with potato recording a dip of about 52 per cent.<br /><br />Protein rich items like egg, meat and fish too were cheaper in May as compared to the previous month and so were milk, fruits, rice and cereals.<br /><br />Overall food inflation was 3.8 per cent, much lower than the previous few months.<br />Similarly, the May inflation in manufactured items (food products, sugar, edible oils, beverages, etc) declined by 0.64 per cent, lowest in past many months.<br /><br />Inflation in fuel and power basket was at (-)10.51 per cent on annual basis, though slightly up from April.<br /><br />Retail inflation in May, as measured on Consumer Price Index (CPI), was 5.01 per cent, marginally up from the previous month.<br /><br />Reserve Bank has cut the key interest rate (repo rate) by 0.75 per cent in 2015, and the government has asked banks to reduce their lending rates.</p>
<p>Easing prices of fuel, food items and manufactured goods kept inflation in the negative zone for the seventh consecutive month in May, although prices fell at a slower rate of (-)2.36 per cent as against the previous month.<br /><br /></p>.<p>The Wholesale Price Index (WPI) based inflation was (-)2.65 per cent in April. It has been in the negative zone since November 2014.<br /><br />Inflation in May last year was 6.18 per cent.<br /><br />The lower inflation comes amid a forecast of deficient monsoon this year.<br />As per the government data released today, vegetable inflation was (-)5.5 per cent, with potato recording a dip of about 52 per cent.<br /><br />Protein rich items like egg, meat and fish too were cheaper in May as compared to the previous month and so were milk, fruits, rice and cereals.<br /><br />Overall food inflation was 3.8 per cent, much lower than the previous few months.<br />Similarly, the May inflation in manufactured items (food products, sugar, edible oils, beverages, etc) declined by 0.64 per cent, lowest in past many months.<br /><br />Inflation in fuel and power basket was at (-)10.51 per cent on annual basis, though slightly up from April.<br /><br />Retail inflation in May, as measured on Consumer Price Index (CPI), was 5.01 per cent, marginally up from the previous month.<br /><br />Reserve Bank has cut the key interest rate (repo rate) by 0.75 per cent in 2015, and the government has asked banks to reduce their lending rates.</p>