Consumer price inflation eased to a four-month low of 4.87 per cent in April on slower annual increases in food costs, government data showed on Tuesday. The data compares to March's upwardly revised 5.25 per cent.
A Reuters poll of economists had expected inflation based on the consumer price index (CPI) to come in at 4.9 per cent.
"The larger message is the trend of falling inflation would continue.
"Bond yields are unlikely to react. The reason for RBI's pause after two rate cuts this year is a possible hike in rates by US Federal Reserve," R Sivakumar, head, Fixed Income, Axis Asset Management said.
Consumer food price inflation dropped to 5.11 per cent last month from 6.14 per cent in March.
The RBI left rates unchanged last month, saying it would watch for transmission of previous rate cuts and price rises.
While most analysts expect the central bank to cut rates by another 25 basis points or 0.25 per cent ahead of its June meeting, some say a rebound in crude prices, along with a sliding rupee and expected poor summer rains, could force a delay.
The government also released factory output data, that showed that industrial production growth in March slowed to 2.1 per cent, compared to 5 per cent a month ago.
A Reuters poll had expected industrial production growth at 2.8 per cent.
(With Reuters inputs)
A Reuters poll of economists had expected inflation based on the consumer price index (CPI) to come in at 4.9 per cent.
"The larger message is the trend of falling inflation would continue.
"Bond yields are unlikely to react. The reason for RBI's pause after two rate cuts this year is a possible hike in rates by US Federal Reserve," R Sivakumar, head, Fixed Income, Axis Asset Management said.
Consumer food price inflation dropped to 5.11 per cent last month from 6.14 per cent in March.
The RBI left rates unchanged last month, saying it would watch for transmission of previous rate cuts and price rises.
While most analysts expect the central bank to cut rates by another 25 basis points or 0.25 per cent ahead of its June meeting, some say a rebound in crude prices, along with a sliding rupee and expected poor summer rains, could force a delay.
The government also released factory output data, that showed that industrial production growth in March slowed to 2.1 per cent, compared to 5 per cent a month ago.
A Reuters poll had expected industrial production growth at 2.8 per cent.
(With Reuters inputs)
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