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

WPI inflation declined due to a favourable base, with the food, non-food manufacturing, minerals, and fuel and power segments contributing to the dip.

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.