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.

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.