Consumer inflation fell to a record low of 5.52 per cent in October, dragged down by sharp drops in food and oil prices. This is the slowest pace of price rise since retail inflation numbers were first published in January 2012.

In another positive development on the economic front, industrial production in September jumped 2.5 per cent compared to 0.4 per cent in August, government data showed on Wednesday. In September, consumer or retail inflation was at 6.46 per cent.

Food price inflation, under a new series published by the government, eased to 5.59 per cent in October from 7.67 per cent in September. Petrol prices have been cut six times since August while diesel prices have been lowered twice since its decontrol last.

With consumer inflation coming below the Reserve Bank of India's target level of 6 per cent, and global oil prices hovering near 4-year lows, expectations are high that the central bank could cut rates.