India July inflation may ease: Barclays

India's headline retail inflation is expected to ease to its lowest level in five months in July due to declining food prices as well as the lagged effect of a cut in fuel taxes, Barclays said.

"There is more evidence that inflation in India has peaked for now, and it is likely to slow faster than RBI's published trajectory, coming into the target band by October," Rahul Bajoria, chief India economist at Barclays, said.

The bank expects July inflation at 6.65 per cent over a year ago, as compared to 7.01 per cent in June. India is due to release July inflation data on August 12.