Inflation dips to 5.2%

Inflation dipped to a two-month low of 5.20 per cent during the week ended May 28 from the previous week's level of 5.38 per cent even as some of the primary and manufactured products became costlier.

The point-to-point wholesale price index inflation fell for the fifth consecutive week by 0.18 percent from the previous week's level, technically due to Base Year effect. It was as high as 5.61 per cent in the year ago period.

WPI rose by 0.1 percent to 192.2 points even as prices of fuel products remained unchanged. The index was 182.7 points in the year ago period.

There were apprehensions that if oil prices are hiked by PSU refiners, it would impact inflation. Petroleum Minister Mani Shankar Aiyar had said it was for Prime Minister Manmohan Singh to decide, while the Left Parties continued to oppose any move to hike fuel prices.

During the week in review, world oil prices hovered over $51 a barrel even as government data showed a surprise dip in US crude inventories ahead of the country's peak demand season for gasoline.

The government revised upwards inflation to 5.70 percent during the week ended April 2 as compared to the provisional estimate of 5.26 percent.

WPI stood corrected at 191 points during the first week of this fiscal against provisional level of 190.2 points.