Business

Indian inflation rate falls to 8.5%

A vegetable seller in a market in Kolkata
Image caption Rising food prices have been a big factor behind India's high inflation rate

India's inflation rate fell in August to its lowest level since January, partly due to changes in the way it is calculated.

India's wholesale-price-index (WPI) inflation slowed to 8.5% last month, down from 9.8% in July, official figures show.

The new index includes a wider range of consumer goods, such as computers, scooters and refrigerators.

Under the old system August's inflation rate would have been 9.5%.

India's has experienced large inflation rises, exceeding 10%, on an annual basis in the five months to June, this year.

The Reserve Bank of India has increased its interest rates four times this year to 5.75%, as it tries to combat rising prices.

Analysts expect the RBI to increase interest rates again when it meets on Thursday.

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