The Wholesale Price Index for August 2014 has clocked 3.74 %, which is a five-year low record. There is a softening noticed in the WPI similar to the trend in consumer price index, which is the main indicator used by the Reserve Bank for inflation management. A falling headline inflation portends well for the economy and the common man, who pays the "price" for high prices. It also bodes well for interest rates, which could come down in future, if the trend continues.
The RBI seeks to bring retail inflation within 8 % by January 2015.