However, pulses turned dearer. The overall Wholesale Price Index (WPI) based inflation was (-)2.36 percent in May, the government data showed today. It has been in the negative zone since November 2014. A year ago in June 2014, inflation was 5.66 percent.

The data come a day after the retail inflation for the same month rose to an 8-month high of 5.4 percent. Experts said the conflicting data would make it difficult to predict the next course of action for RBI, which has cut its rates three times so far this year.

RBI mostly tracks the consumer price inflation for its monetary policy decision, and its next review is due on August 4. The central bank has said it would watch out for the data, including inflation, and the monsoon progress before any change in its policy rates.

Last month, rate of price rise for food items, especially wheat, fruits and milk eased at the wholesale level. Overall wholesale inflation in food category declined to 2.88 percent compared with 3.80 percent in May. However, vegetable prices declined 7.07 percent, with potato prices slumping 52.40 percent. Pulses got dearer by 33.67 percent as against 22.84 percent in the previous month.

Latest News  from Business News Desk