Mumbai: India's consumer inflation dipped to a record of low of 1.54 per cent in June. It was predicted that key macroeconomic parameter would cool down to 1.7 per cent. The consumer inflation was 2.18 per cent in May.

The June numbers are even lower than the Reserve Bank of India's estimate. RBI has fixed an inflation medium term target of 4 per cent with a band of +/- 2 per cent.

Reports said that drop in food and oil prices dragged down the consumer inflation in June. According to a report in The Times of India, latest inflation numbers would further pressure RBI to go for a rate cut at its next monetary policy meet.

Reports suggested that June inflation figures were lowest since the series was launched in 2012. The report cited India Meteorological Department as saying that cumulative rainfall in country between June 1 and July 2 was 6 per cent above the long-run average.

Retail food prices fell 2.12 per cent last month from a year ago, compared with a 1.05 per cent fall in the previous month, a report in Reuters said.