Consumer inflation fell to a record low of 1.54% in June, below the estimate from economists polled by Reuters, who had predicted that inflation would fall to 1.7%. This is a sharp drop from May's 2.18% inflation number. 

The drop has been aided by a fall in food prices, and is significantly lower than RBI's medium term target of 4%. Consumer inflation rates have stayed below RBI targets now for eight months in a row, opening an opportunity for an interest rate cut from the bank. The RBI had against expectations kept the interest rate unchanged in June, but MPC discussions indicated that it could review the stance if the trend continued. The RBI's MPC is set to meet in August.