India's headline inflation probably picked up again in June as a weaker rupee pushed up manufacturing and fuel costs but it was still within the Reserve Bank of India's comfort level, according to a Reuters poll.
Wholesale prices, India's key inflation measure, rose an annual 4.90 percent last month, the poll of 25 economists showed.
The index was up slightly from May's 4.7 percent reading, which was the lowest in over three years, and just below the 5 percent mark the central bank is perceived to be comfortable with.
The RBI is expected to stand pat at its meeting on July 30 despite sluggish economic growth as a falling rupee threatens to further widen the current account deficit which stood at a record high of 4.8 percent of GDP in the fiscal year that ended in March.
"This time incrementally inflation is expected to be higher across the three segments, food, fuel and manufacturing," said Anjali Verma, economist at Phillip Capital.
"For food, largely the reason is (costlier) fruits and vegetables and for the other two segments its largely the currency weakness."