New Delhi, Oct 13 (IANS): India's consumer price index-based inflation at 6.46 percent (provisional) came down to its lowest levels since 2012 during September from 9.84 percent in the corresponding month of last year, government data showed Monday.

The retail inflation based on Consumer Price Index (CPI) had slowed down to 7.73 percent in August from 7.96 percent in the previous month.

The latest data assumes significance as Reserve Bank of India (RBI) had set a target for CPI inflation at eight percent by January 2015 and six percent by January 2016.

In September, vegetables became costlier by 8.59 percent. Sugar became costlier by 0.64 percent year-on-year.

Milk and milk products became dearer by 11.08 percent and fruits became costlier by 22.40 percent.

Cereals became costlier by 6.42 percent. Prices of pulses jumped by 7.18 percent.

The price rise was sharper in rural areas. The Consumer Price Index-based inflation for rural areas increased 6.68 percent in September.

However, for urban areas consumer price inflation grew by 6.34 percent in the month under review as compared to 7.04 percent in the previous month.

Vegetables became costlier by 10.28 percent year-on-year in rural areas while in urban areas the increase was 5.01 percent.

Prices of oils and fats increased by 1.46 percent in rural areas while it decelerated by 3.03 percent in urban areas.

Sugar price increased by 0.63 percent in rural areas, while it increased by 0.94 percent in urban areas.