WPI inflation declined due to a favourable base, with the food, non-food manufacturing, minerals, and fuel and power segments contributing to the dip.

That inflation print will likely offer more scope for the Reserve Bank of India to continue cutting the interest rates.

India’s retail inflation stayed below the Reserve Bank’s 4% target for the fourth straight month in May on easing food prices, reinforcing the case for last week’s surprise 50 basis point interest rate cut by the central bank.