The April WIP inflation is the lowest level of inflation since November 2009 when it was 4.78%
Declining price of food items, including fruits and vegetables, pulled down inflation to nearly a three-and-a-half-year low of 4.89 in April, which may present a case for further monetary policy easing.
Inflation based on the Wholesale Price Index (WPI) stood at 5.96% in March. In April 2012, it was 7.50%.
This is the lowest level of inflation since November 2009 when it was 4.78%.
As per official data released today, WPI inflation in the manufactured items category declined to 3.41% in April from 4.07% in March.
Also, inflation in food articles category, which has a 14.34% share in the WPI basket, came down to 6.08%. Inflation in this category was at 8.73% in March.
The easing in food inflation was helped by a sharp drop in prices of vegetables. Inflation in vegetables stood at (-)9.05% in April, against (-)0.95% in the previous month.
The inflation in fruits declined to 0.71% during the month as compared to 4.71% in March.
However, the rate of price rise in onion was high at 91.69% for the month of April, as against inflation rate of 94.85% in the previous month.
Inflation for February was revised upwards to 7.28% from 6.84% as per provisional estimates.
The retail inflation, as measured by consumer price index, came down to single digit at 9.39% in April after many months, indicating that inflationary expectation is on declining trend.
The RBI will take into account the declining inflationary trend while unveiling its mid-quarter policy review on 17th June.