Indian wholesale price inflation unexpectedly eased to its lowest in 14 months, and analysts said the fall would give the central bank leeway to leave rates unchanged at its next monetary policy review.
The widely tracked wholesale price index rose 4.28 percent in the 12 months to June 9, slowing from 4.80 percent a week earlier and well below a two-year high of 6.69 percent in January, data showed on Friday.
It was lower than a Reuters poll estimate of 4.43 percent. The central bank has raised interest rates five times in the past year, the last time at the end of March, but could now hold its fire when it next reviews policy on July 31 with inflation ruling below its comfort zone of 5 percent.
"The number shows that the underlying inflation trend will remain within the RBI (Reserve Bank of India) forecast. This cements the cast for the RBI to keep rates unchanged in its July meeting," said Rajeev Malik, an economist with J.P. Morgan in Singapore.
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