Falling for the third straight month, retail inflation stood at 9.31% in May due to easing of prices of edible oil and protein-based items, even as vegetable prices inched up sharply.
The Consumer Price Index (CPI) based inflation stood at 9.39% in April. It was 10.39% in March.
The overall food and beverages segment saw an inflation of 10.65% in May, higher than 10.61% in April.
The prices in the vegetables basket rose sharply to 9.78% in May from 5.43% in April, according to data released on Wednesday.
However, inflation in protein-based items - meat, fish and poultry products - declined to 12.52% during the month, from 13.60% in April. In oils and fats segment, it was 5.49%, down from 7.52% in April.
Among all the constituents that make the CPI, cereals recorded the highest inflation of 16.29% in May.
Besides, inflation in pulses stood at 9.59% and in sugar it was 9.21% on an annual basis.
The rate of price rise in clothing and footwear segment stood at 9.72% during the month.
In urban areas, retail inflation declined to 9.65% in May from 9.73% in April. The CPI for rural population fell to 8.98% during the reported month from 9.16% in April.
The data for wholesale price index-based inflation for May is expected on Friday. The WPI in April eased to over three-year low of 4.89%.
The RBI would take into account the drop in retail inflation and the WPI numbers while formulating its mid-quarterly policy review, which is scheduled on June 17.
In order to accelerate economic growth, the Reserve Bank of India (RBI) had last month cut key interest rates by 0.25%.
Meanwhile, another key economic indicator, the index of industrial output (IIP) grew at 2% in April.