After rising to a five-month high in May, inflation dipped to 5.43 per cent in June mainly on account of decline in prices of food items and vegetables with the exception of potato and onion.
It was at 5.16 per cent a year ago in June 2013.
As per the Wholesale Price Index (WPI) inflation, prices of vegetables as a category declined by 5.89 per cent during the month, while that of potato and onion soared by 42.51 per cent and 10.70 per cent respectively in the wholesale market.
Inflation had soared to a five-month high of 6.01 per cent in May 2014.
Among other important items, prices of sugar and edible oils fell by 2.09 per cent and 0.75 per cent respectively during June.
The food items that became expensive during the month include fruits (up 21.40 per cent), followed by milk (10.82 per cent), egg, meat and fish (10.27 per cent) and rice (10.24 per cent).
The inflation of food items as a category, however, continued to remain high at 8.14 per cent during the month and will continue to be a cause of concern for the government which is gearing up to meet the impact of poor monsoon on the price situation.