Inflation falls to 3-month low of 8.28% in May

New Delhi: Subdued prices of vegetables, cereals and dairy products pushed down retail inflation to a three-month low of 8.28 percent in May. The retail inflation, measured on consumer price index (CPI), was 8.59 percent in April. [caption id=“attachment_1567925” align=“alignleft” width=“380”]  Getting cheaper. AFP[/caption] In February 2014, retail inflation was at 8.03 percent, followed by consecutive rise in March (8.31 percent) and April. As per the data released by government today, food inflation also fell slightly to 9.56 percent in May against 9.66 percent in April. During the month, vegetable prices were down by 15.27 percent as against 17.5 percent in April. Prices of cereals and its products came cheaper with rate of price rise at 8.81 percent as against 9.67 percent a month ago. Likewise, rate of price rise in milk and milk products remained at 11.28 percent, slightly lower than 11.42 percent in April, showed the data. Among others, food and beverages inflation stood at 9.40 percent in May versus 9.66 percent in the previous month; fuel and light prices expanded at 5.07 percent during the month as against 5.96 percent rise in April. However, fruit prices turned costly in May with rate of price rise at 23.17 percent as against 21.73 percent a month earlier. Also, prices of oil and fats went up by 0.91 percent in May compared to 0.35 per cent rise in the previous month. Protein related items such as eggs, fish and meat had a higher rate of inflation at 10.11 percent as against 9.41 percent in April. According to the data, the corresponding provisional inflation rates for rural and urban areas for May 2014 are 8.86 percent and 7.55 percent, respectively. The CPI data for June 2014 will be released on 14 July, the official statement said. PTI