According to research reports from financial services firms -- Citigroup and SBI -- CPI inflation has remained within RBI's comfort range despite a spell of unseasonal rains and the recent increase in global crude prices.

"The sensitivity to inflation has been on a decline and this could especially be the case if global food prices remain benign and trends in rural wages and MSP remain moderate," Citigroup India Economist Anurag Jha said in a research note.

Retail inflation edged up to 5.01 percent in May. The Consumer Price Index-based inflation was at 4.87 percent in April.

"Overall, we expect CPI to undershoot RBI's January 2016 projection by around 40 basis points and average 5 percent in FY16, while WPI could average about 2 percent with downside risks. This is likely to create room for further 25 basis points cut post clarity on monsoon," Citigroup added.

Meanwhile, a research report by leading public sector lender SBI cited, "Going forward, we believe CPI trajectory will be benign and will be lower than RBI projections at around 6.5 percent (March 2016)."

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