India inflation hits two-year low

Rising income in India has helped the economy grow

Inflation in the fast-growing Indian economy fell to a two-year low at the beginning of September, helped by the lower price of vegetables.

India's wholesale price index rose 3.52% in the 12 months to 1 September, the lowest level since 27 August 2005.

The number was sharply below the country's central bank target of 5% for the year to April 2008 and paves the way for a halt in interest rate rises.

Five rate rises over the past year will cool economic growth, analysts predict.