Wholesale Price Inflation in India increased to 3.74% in August from 3.55% in July, but the rise in prices of food items has started slowing down, Mint reported on Wednesday. The prices of manufactured goods, which are the largest contributors to the inflation rate, rose by 2.42% from 1.82% in July.

Data released on Monday further showed that Consumer Price Inflation fell to 5.05% in August from 6.07% a month earlier on the back of lower food prices, the Business Standard reported. Analysts expect inflation rates to fall further as the prospects of a bumper agricultural harvest have increased after a good monsoon in the country. Around 86% of India has received rainfall between normal and excess levels, according to the Indian Meteorological Department.

The data has increased hopes that new Reserve Bank of India Governor Urjit Patel will cut interest rates when he holds his first policy review in October, according to NDTV. Patel’s predecessor Raghuram Rajan left rates unchanged during his final review in August. Rajan has also said that low rates are no substitute for policy reforms.