New Delhi: Continuing decline in food prices, including vegetables, pulled down the September wholesale price inflation to a five year low of 2.38 per cent.
The Wholesale Price Index (WPI) based inflation was at 3.74 per cent in August and 7.05 per cent in September 2013.
As per data released by the government on Tuesday, the food inflation fell to a nearly two-and-half year low of 3.52 per cent. Food inflation is on decline since May.
The sharp drop in WPI inflation comes just at the back of retail inflation declining to a record low of 6.46 per cent in September.
Wholesale inflation in onion contracted to 58.12 per cent in September as compared to a contraction of 44.7 per cent in the previous month.
While inflation in vegetable basket as a whole shrunk to 14.98 per cent in September, rate of price rise in potato was 90.23 per cent from 61.61 per cent in the previous month.
The data further revealed that inflation in milk, eggs, meat and fish continued to decline in September as well.
However, there was slight increase in the prices of fruits during the period.
Inflation in manufactured products, like sugar, edible oils, beverages and cement, fell to 2.84 per cent in September as against 3.45 per cent in the previous month.