Wholesale price index (WPI), the measure inflation on wholesale prices, fell to 1.08 percent in July, the lowest in 25 months, on account of lower fuel and food prices, government data on Wednesday showed. It was 2.02 percent in June and 5.27 percent in July 2018.

"Build up inflation rate in the financial year so far was 1.08% compared to a build up rate of 3.1% in the corresponding period of the previous year," a release by Ministry of Commerce and Industry said.

The data showed that the index for the 'Food Articles' group was up by 1.3 percent to from the previous month. The index for 'Non-Food Articles' group saw a 0.1 percent increase from June.

On the other hand, the index for 'Minerals' group fell by 2.9 percent while the index for 'Crude Petroleum & Natural Gas' group saw a 6.1 percent decline when compared to the month before.

The ministry revised the wholesale inflation for May from 2.45 percent to 2.79 percent.

The Reserve Bank of India looks at inflation data for its monetary policy review.