Consumer price inflation hits record low of 5.52%

India's consumer price inflation slowed further to hit a record low of 5.52 per cent in October 2014, from 6.46 per cent in September, following a decline in food prices and a simultaneous increase in industrial production.

Consumer prices based on the consumer price index rose 5.52 per cent annually on the back of a 6.46 per cent increase in September.

This is the third consecutive fall in consumer price inflation and the figure is the lowest since the government started releasing the data in January 2012.

However, the latest easing in inflation may not be enough to prompt the Reserve Bank of India to cut interest rates, analysts say.

Food price inflation eased to 5.59 per cent from 7.67 per cent in the previous month.

General indices for rural areas stood at 5,52 per cent and it was 5.55 per cent for urban areas while the combined figure stood at 5.52 per cent.

Consumer food price index for October 2014 for rural areas stood at 5.77 per cent while it was 5.14 per cent for the urban areas.