Retail inflation rises to 3.05% in May; industrial output grows 3.4% in April

India's retail inflation rate picked up in May on higher food prices, but stayed below the central bank's target, potentially giving it room for more interest rate cuts to help an economy that has been growing at its slowest pace in over four years.

Annual retail inflation in May was 3.05%, up from the revised 2.99% in the previous month, and above analyst forecasts, government data showed on Wednesday.

The Reserve Bank of India's medium-term target for inflation is 4%.

India's industrial output in April grew 3.4% from a year earlier, government data showed on Wednesday.

Industrial output for 2018/19 grew at 3.6%.