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

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

India's retail inflation stayed below the central bank's 4% target for the fourth straight month in May on easing food prices, reinforcing the case for last week's surprise steep interest rate cut. Annual retail inflation slowed to 2.