India's Wholesale Price Index (WPI) inflation fell to a four-month low in October, declining to 3.39 percent as vegetables and others products witnessed softening of prices.

The annual rate of inflation, based on monthly WPI, stood at 3.39% for the month of October, 2016 as compared to 3.57% for the previous month.

The index for primary articles inflation fell by 0.8 percent, while the fuel and power group rose by 1.0 per cent. Both these have the top weightages in the WPI index.

The manufactured products index rose by 0.2 percent to 157.4 from 157.1 for the previous month.

The index for 'Beverages, Tobacco & Tobacco Products' group declined by 0.1 percent to 221.7 from 221.9 for the previous month due to lower price of beer (1%).

"The index for 'Food Articles' group declined by 0.3 percent to 278.8 (provisional) from 279.6 (provisional) for the previous month due to lower price of urad (6%), masur and fruits & vegetables (4% each), arhar, bajra, maize and mutton (3% each), jowar (2%) and moong, fish-inland and condiments & spices (1% each). However, the price of gram (18%), ragi (9%), poultry chicken (5%) and fish-marine, coffee and milk (1% each) moved up", a release from PIB has stated.

WPI index has not much weightage as the Reserve Bank of India uses the Consumer Price Index (WPI) index for determining its monetary policy action.

The RBI Governor Urjit Patel last month cut benchmark interest rates by 0.25 per cent to 6.25 per cent.

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