India: Inflation falls to 5-yr low

Headline inflation softened to an almost five-year low of 3.74 per cent in August, but the Reserve Bank of India (RBI) may prefer to wait for a couple of more months and not cut interest rates when it reviews the monetary policy on September 30. The wholesale price index (WPI)-based inflation is the lowest since October 2009, when it stood at 1.8 per cent. India has always been comfortable when WPI-based inflation is at 4 per cent or less. The August print of 3.74 per cent is partly attributed to a statistical base effect and sub-$100 global crude oil prices. Headline inflation in July stood significantly higher at 5.19 per cent, and the RBI kept the repo rate unchanged at 8 per cent in its August policy review, according to indianexpress.com