India's retail inflation eased to a five-month low of 4.31% in January from 5.22% in December as food price inflation declined, government data released on Wednesday showed.

The Indian government has been steadily lowering its full-year real GDP forecasts, after the economic growth missed expectations by a large margin in the quarter ended September, when its grew by 5.4% — its slowest expansion in nearly two years.

This could clear the way for another rate cut by the Reserve Bank of India, which slashed rates from 6.5% to 6.25% after its monetary policy meeting on Feb. 7.

India's retail inflation slowed to a five-month low in January as food price inflation eased, boosting the odds of another rate cut in the South Asian economy where growth is slowing amid the escalating threat of a global trade war.

This could clear the way for another rate cut by the Reserve Bank of India, which slashed rates from 6.5% to 6.25% after its monetary policy meeting on Feb. 7.

India's retail inflation fell to a 5-month-low value of 4.31% in January this year. Read on to know how that affected your wallet.

Retail inflation in India eased to a five-month low of 4.3% in January due to moderating vegetable prices, while industrial output growth slowed to 3.2% in December, largely due to sluggish performance in the manufacturing sector.