India's federal Reserve Bank of India (RBI) informed on Thursday that India`s wholesale price index (WPI) based Inflation plunged to 2.97% for the week ended October 27, as against 3.02% in the previous week.

India's inflation rate has fallen to its lowest level in more than five years as food staples such as fruits, vegetables and sugar declined. The WPI index stood at 5.35 per cent during the corresponding week a year ago.

As reviewed for the week, prices of fruits and vegetables, cereals and pulses declined, while wheat, poultry chicken, fish-marine, milk and eggs became costly. However, manufactured items, prices of gur, paper and paper products and lead ingots got cheaper, while products like atta, maida, imported edible oils and dry cells got dearer.

Interest rates are at four-year highs and the RBI, the central bank, held rates steady at 7.75 per cent at its monetary policy committee meeting last month citing excess money supply and rising energy costs.

Inflation worries persist in India, as crude oil surges close to $US100 a barrel. However, as for now inflation during the week remained well below RBI's projection of close to 5 per cent for the current fiscal.

Source: (myiris, M&C, Radio Australia)