Retail inflation fell to a five-month low of 5.05% in August while industrial growth contracted by 2.4%, primarily because manufacturing output shrunk by 3.4%, according to data released by the Indian government on Monday. The Consumer Price Index, used to calculate retail inflation, had grown by 6.07% in July.

According to analysts, consumer inflation dropped after a fall in food prices. The cooling of retail inflation, coupled with the shrinking manufacturing sector, might give room for the Reserve Bank of India to consider an interest rate cut in October, according to Mint.

The Reserve Bank of India had earlier said that if the inflation dropped below 6%, it could announce a policy rate cut. The central bank aims to bring down retail inflation to 5% by March 2017. Economic Affairs Secretary Shaktikanta Das told ANI, “As expected, the CPI inflation has come down to 5%. This is along the expected line.”

Market analysts believe that inflation may drop even further with India having received a good monsoon. According to the Indian Meteorological Department, around 86% of the country has received normal to excess rainfall, and there has been no major crop loss. There is also a chance that Kharif crop production will see an excess of 4.16% land sown this year.