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

Beyond the ongoing quarter, the RBI expects inflation to rise to 3.4 per cent in July-September, 3.9 per cent in October-December, and end the fiscal at 4.4 per cent. However, according to HSBC, inflation is likely to average around 2.5 per cent for the next six months.

India's consumer inflation rate likely eased to a more than six-year low of 3% in May thanks to a favourable base and a further moderation in food prices, a Reuters poll forecast, supporting last week's larger-than-expected interest rate cut.