Retail inflation fell to a record low of 3.78 per cent in July on account of cheaper food prices, including of vegetables, fruits and cereals. The retail inflation based on Consumer Price Index (CPI) was as high as 7.39 per cent in July last year, while it was at 5.40 per cent in June this year. According to official data released yesterday, Food inflation, measured on Consumer Food Price Index, fell to 2.15 per cent during July this year as against 5.48 per cent recorded in June.Prices of vegetables fell sharply during the month from a year ago, with inflation printing a negative 7.93 per cent. Fruits also turned cheaper by 1.45 per cent during the month compared to the same month last year. However, prices of protein-rich items, such as pulses, remained higher as inflation rose to 22.88 per cent. Meat and fish prices also turned costly by 7.02 per cent.Meanwhile, growth in the country's Industrial production rose to a 4-month high of 3.8 per cent in June, this year, due to improvement in manufacturing activity. Measured in terms of the Index of Industrial Production, industrial output had grown 4.3 per cent in June last year.According to data released by the Central Statistics Office, the manufacturing sector, which constitutes over 75 percent of the IIP, grew at 4.6 per cent in June this year. But output of capital goods, a barometer of investment, contracted 3.6 per cent, and mining sector output fell 0.3 per cent during the month. Power generation growth stood at 1.3 per cent in June.Finance Secretary Rajiv Mehrishi said, with crude prices still falling, inflation is expected to remain under control. He said that industrial production growth shows that the economy is on mend.On the Industrial production hitting a 4-month high, India Inc said that it indicates revival in industrial activity on the back of improved performance of manufacturing, and should motivate the RBI to slash interest rates.Terming the outcomes of the recent RBI policy review as slightly disappointing, Assocham said the central bank should have reduced the rates a bit to provide a fillip to the industrial growth.