India’s retail inflation stayed below the Reserve Bank’s 4% target for the fourth straight month in May on easing food prices, reinforcing the case for last week’s surprise 50 basis point interest rate cut by the central bank.

The RBI has also revised its inflation outlook for 2025-26 downwards from the earlier forecast of 4 per cent to 3.7 per cent, Reserve Bank Governor Sanjay Malhotra said on Friday.

(Reuters) - India's annual retail inflation slowed to 2.82% in May from 3.16% in May on the back of a slower rise in food prices, government data showed on Thursday. The inflation print was below economists' estimate of 3% in a Reuters poll.