Inflation dips below 5 per cent mark

Inflation fell below the five per cent mark to stand at 4.85 per cent for the week ended May 26 from 5.06 per cent in the previous week.

Inflation fell below the five per cent mark to stand at 4.85 per cent for the week ended May 26 from 5.06 per cent in the previous week, as the prices of essential food items like pulses and fruits and vegetables declined.

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The decline in inflation is also due to base effect of last year. For the first time in many months the rate was less than what it stood a year ago.

The wholesale prices-based index was at 4.99 per cent during the corresponding week last year.

Prime Minister Manmohan Singh had expressed hope last month that the inflation rate would come down to 5 per cent in a couple of months.