New Delhi, Aug 14 : Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII), has sounded positive over latest figures showing the inflation to be at a two month low.

"It is good to note that headline inflation has eased to a two month low in July 2014, essentially on the back of a drop in fuel prices and a moderation in the prices of food items such as cereals and vegetables," Banerjee said.

"It is anticipated that food inflation would come down in the coming months, considering that monsoons have started picking up pace and the rain deficiency has come down significantly. Besides, the recent initiatives taken by the government to contain inflation would act as a lever to tackle inflation and curb inflationary expectations," Banerjee added.

The wholesale price index (WPI)-based inflation declined to a five-month low of 5.19% in July from 5.43% in the previous month.

The fall in the Wholesale Price Index rate was reportedly due to decline in fuel prices, which slowed to 7.4% in July from 9.04% a month ago.

The Reserve Bank of India (RBI) on August 5 kept its key policy rates unchanged and indicated that it was not ready to relax monetary policy. (ANI)