<p>India’s consumer inflation is expected to have slowed to a record-low in June, pressured by a sharp drop in food and oil prices, a Reuters poll showed, a result that could intensify calls for an interest rate cut.<br /><br />Consumer price inflation is predicted to cool to 1.70% in June, easing further from May's 2.18%, according to the poll of more than 30 economists taken over the past week.<br /><br />If realised, it would be the lowest level since the series began in 2012, and below the Reserve Bank of India’s (RBI) medium-term target of 4% for an eighth successive month. Core inflation, however, has remained stubbornly above 4% since at least 2015.<br /><br />Forecasts for the headline figure ranged from 1.2% to 2.7%. The data will be released on July 12 at 1200 GMT.<br /><br />“Inflation is expected to take a downturn on account of deflationary pressures witnessed in vegetables and pulses amid slowdown in fuel prices,” said Himanshu Varshney, research analyst at AK Capital.<br /><br />Food and beverage price index, which accounts for nearly half the consumer price index basket, is forecast to contract 1.05% in May, a significant turn from a peak in July last year when it rose 8.35%.<br /><br />The India Meteorological Department (IMD) said last week that the nation’s cumulative rainfall between June 1 and July 2, was 6% above the long-run average.<br /><br />Monsoon showers, which deliver about 70% of India’s annual rainfall, help drive higher food and grain production, keeping inflation in check.</p>
<p>India’s consumer inflation is expected to have slowed to a record-low in June, pressured by a sharp drop in food and oil prices, a Reuters poll showed, a result that could intensify calls for an interest rate cut.<br /><br />Consumer price inflation is predicted to cool to 1.70% in June, easing further from May's 2.18%, according to the poll of more than 30 economists taken over the past week.<br /><br />If realised, it would be the lowest level since the series began in 2012, and below the Reserve Bank of India’s (RBI) medium-term target of 4% for an eighth successive month. Core inflation, however, has remained stubbornly above 4% since at least 2015.<br /><br />Forecasts for the headline figure ranged from 1.2% to 2.7%. The data will be released on July 12 at 1200 GMT.<br /><br />“Inflation is expected to take a downturn on account of deflationary pressures witnessed in vegetables and pulses amid slowdown in fuel prices,” said Himanshu Varshney, research analyst at AK Capital.<br /><br />Food and beverage price index, which accounts for nearly half the consumer price index basket, is forecast to contract 1.05% in May, a significant turn from a peak in July last year when it rose 8.35%.<br /><br />The India Meteorological Department (IMD) said last week that the nation’s cumulative rainfall between June 1 and July 2, was 6% above the long-run average.<br /><br />Monsoon showers, which deliver about 70% of India’s annual rainfall, help drive higher food and grain production, keeping inflation in check.</p>