India's consumer inflation continued to ease in July, dropping for a ninth straight month to 1.55%, below analysts' estimates, government data showed Tuesday.

India' retail inflation in July eased below 2% for the first time in eight years, on the back of falling prices of food items including vegetables and pulses, hurting some farmers but giving the central bank room to cut interest rates further.

In July, rural inflation stood at 1.18%, down from 1.72%, while urban inflation eased to 2.05% from 2.56%. On the other hand, fuel and light inflation increased to 2.67% from 2.55