India's retail inflation likely reached an eight-month high in June on rising food prices, but stayed under the Reserve Bank of India's medium-term target of 4% for an eleventh straight month, a Reuters poll predicted.
Another reading below the inflation target will likely support the RBI's decision last month to cut interest rates to boost economic growth that slowed to more than a four-year low in the January-March quarter.
According to the median consensus of 40 economists polled by Reuters between July 4-7, retail inflation rose at an annual rate of 3.20% in June, up from 3.05% in May.
Forecasts ranged between 2.90% and 3.84%.
Food prices which account for nearly half of the inflation basket have been rising since early this year, a dramatic shift from their deflationary path in late 2018.
If the consensus forecast is realised, retail inflation will have been below the RBI's medium-term target of 4% since July last year.