Wholesale inflation at 2-year low of 2.45%; food inflation eases to 6.99%

The WPI inflation rate in manufactured items declined to 1.28% in May, from 1.72% in April

Charting a divergent path from its retail price counterpart, the wholesale price index- (WPI)-based inflation rate fell to a 22-month low at 2.45 per cent in May, reflecting weak demand in the economy. 

The WPI inflation rate in May is the lowest since July 2017, when it was at 1.88 per cent.  The food inflation, too, declined from over 30-month high of 7.37 per cent in April, but it still remained at an elevated level of 6.99 per cent. 

Sunil Kumar Sinha, principal economist at India Ratings, said despite a lower rate of price rise in May compared to April, stress is