Retail inflation in India has dropped to a four-month low in October, falling below 5%. The easing of inflation is attributed to lower prices of food items and fuel. The lower inflation rate has raised hopes of a potential interest rate cut in the coming year. However, prices of cereals, pulses, and spices continue to put pressure on inflation. The RBI governor has previously stated that interest rates will remain high, and the central bank will closely monitor inflation dynamics.