India's wholesale inflation drops to five year low

India's annual wholesale inflation rate dropped to its lowest level in five years to 1.77 percent in October from 2.38 percent in the previous month and 7.24 percent for the like month of the previous year, official data showed Friday.

In what has come as a major respite for an average consumer, the annual food inflation actuually declined by 1.3 percent due to a drop in the prices of fruits and vegetables, some lentils and coarse cereals. But prices of fish, eggs, mutton moved up.

Similarly, as per data on official wholesale price index released by the government, the index for fuel and power also declined by 1.3 percent, due to lower prices of aviation fuel, petrol, diesel and kerosene.

The index for manufactured products remained unchanged.

The drop in wholesale inflation, along with a fall in the retail index and the rise in factory output reported earlier this week, are some welcome signs for the Reserve Bank of India to consider an interest rate cut to push growth.