"This provides sufficient room to the RBI to review its prolonged pause in policy rates and move towards policy easing in its forthcoming monetary policy especially as investment and consumption demand are yet to show visible signs of a pick-up," CII Director General Chandrajit Banerjee said.
The sharp drop in WPI inflation, which fell for the fifth month in a row, came at the back of retail inflation declining to a record low of 5.52 per cent in October.
"The government is committed towards achieving fiscal consolidation and this along with alleviated inflation creates room for a more accommodative stance from the central bank in terms of rate reduction in the policy to be announced next month," he added.
"Now that wholesale inflation has been tamed, the Government must see such a phenomenal development gets translated into prices paid by consumers. Besides the relevant policy concern must be to see more investments take place in capacity building activities thereby creating a better supply response," Assocham secretary General D S Rawat said.