Inflation based on wholesale price index, which has been retreating since November last year was down to 3.81 per cent in October, down from 4.54 per cent in September.
The decline in WPI comes despite pulses and onions turning costlier.
The deflationary trend continued for the 12th month in a row with WPI inflation lower in October, mainly on account of subdued prices of food items although pulses and onion were costlier.
Pulses were costlier by 52.98 per cent and onions by 85.66 per cent respectively during October.
Despite the sharp rise in prices of various pulses and the concerns generated by the unfavourable monsoon, overall food inflation remained muted in October.
The rate of price rise in case of vegetables was at 2.56 per cent as against (-)19.37 per cent in the same month last year, as per official data released on Monday.
The WPI in October 2014 was 1.66 per cent.