14 November 2012 Last updated at 08:59 ET

India's rate of inflation continues to slow in October

Rising cost of food and fuel have been a hot political topic in India

India's inflation rate has slowed in October, hinting that price pressures on food and fuel may be easing in Asia's third-largest economy.

The wholesale price index, the country's main gauge of inflation, fell to 7.4% in October from a year earlier.

That is down from a figure of 7.8% in September and a revised 8% in August.

However, inflation is still too high for many policymakers and analysts said that the central bank is unlikely to rush and cut interest rates.

The central bank has been under pressure to lower borrowing costs and help revive economic growth.

"The underlying inflationary pressures are firm and this number is not necessarily sufficient to change the Reserve Bank of India's reluctance to cut interest rates," said Leif Eskesen, chief economist for India and the Association of Southeast Asian Nations at banking group HSBC.

An earlier version of this story stated in error that inflation had risen to a 10-month high.