Consumer price inflation inched up in June to 5.4 per cent from 5.01 per cent in May, government data showed on Monday.
A Reuters poll of 30 economists had forecast inflation at 5.1 percent in June.
The Reserve Bank of India (RBI) has already cut repo rate - the rate at which the central bank lends short-term money to banks - thrice this year, and is closely monitoring the effect of monsoon rains on inflation to determine whether there is further room for policy easing.
The RBI has set a target of consumer price inflation at 6 per cent by January and 4 per cent by March 2018.
The RBI last cut repo rate on June 2, lowering it to 7.25 per cent, bringing the total reduction since it began easing in January to 75 basis points or 0.75 per cent.
RBI Governor Raghuram Rajan is due to review the central bank's monetary policy next month.
June's rainfall data has been encouraging and fears that India might experience a second year of drought have remained unfounded. However, July is a key month for planting crops and poor rains could drive food prices up sharply.
(With Reuters inputs)
A Reuters poll of 30 economists had forecast inflation at 5.1 percent in June.
The Reserve Bank of India (RBI) has already cut repo rate - the rate at which the central bank lends short-term money to banks - thrice this year, and is closely monitoring the effect of monsoon rains on inflation to determine whether there is further room for policy easing.
The RBI has set a target of consumer price inflation at 6 per cent by January and 4 per cent by March 2018.
The RBI last cut repo rate on June 2, lowering it to 7.25 per cent, bringing the total reduction since it began easing in January to 75 basis points or 0.75 per cent.
RBI Governor Raghuram Rajan is due to review the central bank's monetary policy next month.
June's rainfall data has been encouraging and fears that India might experience a second year of drought have remained unfounded. However, July is a key month for planting crops and poor rains could drive food prices up sharply.
(With Reuters inputs)
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