"We believe that softening of prices is in our interest. With crude prices down, this trend of lower food prices will continue," he told reporters here.

The Minister, however, cautioned that it has to be seen how the oil prices augur going forward. "We should not be overtly optimistic at this time," Jaitley added.

Global crude prices have dropped to four-year lows of USD 77 a barrel.

Wholesale price based inflation dropped to 5-year low of 1.77 per cent in October, from 2.38 per cent in September, driven by decline in rate of price rise in food and fuel items.

Commenting on the industrial output growth which was at a three-month high of 2.5 per cent in September, Jaitley said he would have been happier had the growth been a little higher.

"2.5 per cent (IIP growth) is not enough for me to smile. Targets are higher and it will take its time. Steps that we are taking will take a little time before it shows it's impact," the Minister said.

Factory output, measured in terms of Index of Industrial Production (IIP), showed an improvement mainly because of an uptick in mining and manufacturing production and larger offtake of capital goods.

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