Inflation in India fell sharply in December to 7.5% from 9.1% in the previous month, partly due to an easing in the rate of food price rises.
This is the first time inflation has fallen below 9% in almost two years.
Despite the fall, analysts said the central bank was unlikely to cut interest rates, which currently stand at 8.5%, next week.
The BBC reports the bank has increased rates 13 times since March 2010 in an effort to hold down rising prices.
Finance Minister Pranab Mukherjee said recently that policymakers would start concentrating on improving economic growth rather than taming inflation.