India inflation slows to five-year low in August

India's wholesale price inflation slowed to its lowest level in almost five years in August, data showed Monday, after the right-wing government came to power pledging to wrestle down crippling prices.

The Wholesale Price Index increased 3.74 percent year on year -- far below market forecasts of around 4.40 percent -- and sharply lower from 5.19 percent last month.

I was also the lowest since October 2009 thanks largely to a drop in fuel and metals prices, the data showed.

The figures will come as welcome news for Prime Minister Narendra Modi's government, which swept to power to May promising to tackle high inflation that has long angered voters.

They also reduce pressure on the hawkish central bank to hike already-steep interest rates that businesses say have hindered growth-stimulating investment.

Reserve Bank of India Governor Raghuram Rajan has made taming inflation one of its top priorities, despite business leaders clamouring for rate cuts.