India's headline inflation fell sharply to five-year low of 3.74% in August 2014 as compared to 5.19% in the previous month. It came below market expectations of 4.1%. June WPI inflation revised to 5.66% from 5.43% earlier.

Commenting on the WPI numbers, D.S. Rawat, secretary general of Assocham, said, ''The moderation of prices of food, energy and materials not only in India but across the world has certainly lead to low wholesale inflation in India. The favourable base effect too has played its role in this result."

Assocham secretary general said, "If prices sustained, this would surely turnout to be a key factor leading to economic growth revival in India. If we consider the conditions on the ground, industrial production in the month of July 2014 registered a mere 0.5% growth as the capital goods and consumer durables are passing through a prolonged phase of deceleration."

"Therefore, in order to address the current growth concerns, authorities need to create more conducive conditions to promote economic growth, specifically, the RBI has to ensure that the cost of finance to the end user becomes competitive in its upcoming bi-monthly monetary policy review,'' Rawat concluded.