WPI Inflation for the Month of Oct hit a more than 5-year low at just 1.77 per cent, the lowest level since Sept 2009.
The sharp fall in WPI and CPI inflation now raises the prospect of a cut in interest rates by the RBI when it meets in early December.
The annual rate of inflation for the month of August has been revised downwards to 3.85 per cent.
Earlier the Consumer price Index for the month of October eased to its all-time low of 5.52 percent. This was at the the lowest level since the country started computing consumer price index (CPI) in January 2012. Lower food prices aided the decline.
Today's drop in the WPI Inflation may now force the RBI to rethink its strategy on interest rates. With inflation gradually edging lower, the country's central bank may lower interest rates. This may well push economic growth in the country.