WPI inflation declined due to a favourable base, with the food, non-food manufacturing, minerals, and fuel and power segments contributing to the dip.

That inflation print will likely offer more scope for the Reserve Bank of India to continue cutting the interest rates.

Wholesale inflation--or the rate of increase in the wholsesale prices of a basket of goods--eased to 0.39 per cent in May from 0.85 per cent in the previous month, according to official data released on Monday.