India's overall inflation drops further 5-year low of 1.77 in October

India's overall inflation, measured by the Wholesale Price Index (WPI), dropped 5-year low of 1.77% in October compared to 2.38% in September, giving enough room to the RBI to cut rates to boost growth. Overall inflation stood at 7.24% in October last year.

The Food Price Index for October dropped steeply 2.7% compared to 3.52% in September.  The rate of price rise for onions, venerates were contracted by 59.77% and 19.61% respectively in the same month while price rise of protein rich items like eggs, meat and fish stood 2.58% in October.

With lowered wholesale inflation and retail inflation numbers, the RBI is expected to cut rates during its next monetary policy review meeting to be held in first week of December.