Declining prices of vegetable and other food articles pulled down wholesale inflation sharply to 3.74 percent in August to a nearly five-year low.

The inflation measured on Wholesale Price Index (WPI) was at 5.19 percent in July and 6.99 percent in August 2013.

Inflation in the food segment witnessed a significant decline to 5.15 percent in August as against 8.43 percent in the previous month, according to official data released on Monday.

The August WPI inflation is the lowest since October 2009 when it stood at 1.8 percent.

Vegetable prices contracted 4.88 percent, the third continuous month of decline.

Maintaining a downward trend, the onion prices contracted by 44.7 percent during the month under review.

However, potato prices were on the rise as inflation in the kitchen essential jumped to 61.61 percent from 46.41 percent in July.

Inflation in the fruits basket eased to 20.31 percent in August.

While prices of protein rich items like egg, meat and fish contracted during the month, inflation in milk and pulses inched up to 12.18 percent and 7.81 percent, respectively, as compared to July.

The August retail inflation too eased to 7.8 percent compared to 7.96 percent in July.

The wholesale WPI data further revealed that the price rise in manufactured goods, like sugar and edible oils too eased to 3.45 percent in August, while it was 3.67 percent in July.

Inflation in the fuel and power segment which include LPG, petrol and diesel declined to 4.54 percent as compared to price rise of 7.40 percent seen in July.

Meanwhile, wholesale inflation based on final index for June has been revised upwards to 5.66 percent from the provisional estimate of 5.43 percent.

The August WPI data is also provisional, the government said.

It also said the build up inflation rate in the financial year till August is 3 percent compared to a build up rate of 5.23 percent in the same period of 2013-14.