Inflation drops to 5-year low of 1.77% in October

Continuing decline in food prices, including vegetables, pulled wholesale price inflation to a five year low of 1.77% in October.

The Wholesale Price index (WPI) based inflation was at 2.38% in September and 7.24% in October 2013.

As per data released by the government today, the food inflation fell to a nearly two-and-half year low of 2.7%. Food inflation is on decline since May.

The sharp drop in WPI inflation, which fell for the fifth month in a row, came at the back of retail inflation declining to a record low of 5.52% in October.

Inflation in the fuel and power segment which include LPG, petrol and diesel declined to 0.43% as compared to price rise of 1.33% in September.

In case of vegetables, the contraction was 19.61%, while in protein rich items of egg, meat and fish it was 2.58% in October.

During the month, inflation in potato stood at 82.11%, against 90.23% in the previous month.