Inflation declined to 7.25 percent in June as prices of manufactured items eased a little, although vegetables, wheat and pulses became costlier.

Inflation, as measured by the Wholesale Price Index (WPI), was 7.55 percent in May. In June last year, it was 9.51 percent.

Overall food inflation rose to 10.81 percent in June, from 10.74 percent in May. In June last year, inflation rate in this category was 7.6 percent. Food articles have 14.3 percent share in the WPI basket.

In the manufactured items category, prices of cotton textile, rubber and plastic products, iron and machinery eased a little year-on-year basis.

The rate of price rise in the manufactured products was 5 percent in June, as against 7.9 percent in the same month last year. In May this year, it was 5.02 percent.

In food articles category, rice turned expensive by 6.70 percent in June, wheat 7.46 percent, pulses 6.82 percent and vegetables by 20.48 on annual basis.

On month-on-month basis, poultry chicken prices were up by 7 percent, gram 6 percent, masur 4 percent, and fruits & vegetables, egg, arhar, rice by 2 percent each. Tea, milk, wheat and mutton were up 1 percent each.

Easing of inflation has raised some hopes of cut in interest rate by RBI at its monetary policy review later this month.

Meanwhile, inflation for April has been revised upwards to 7.50 percent, from the provisional estimate of 7.23 percent.