Rises in food prices, which make up about half the consumer price index (CPI), continue to cool from recent peaks after the Indian government enacted a series of measures to boost supply.
"Having said that, the persistent part of the food inflation problem remains there, which is cereals, pulses and spices, and I think the RBI can't do much about it anyway."
Rising crude oil prices are also likely to keep inflation elevated in the world's third-largest oil importer.
Oil prices rose around 3% on Monday to trade around $90 a barrel.
"Oil prices ... are likely to remain high over the remainder of the year on global supply concerns," said Alexandra Hermann at Oxford Economics.
Persons:
Amit Dave, Dhiraj Nim, Alexandra Hermann, Milounee Purohit, Anant Chandak, Veronica Khongwir, Hari Kishan, Mark Potter
Organizations:
REUTERS, Reserve Bank of India's, CPI, ANZ Research, Oxford, Inflation, Thomson
Locations:
Ahmedabad, India, BENGALURU