Indian inflation continues to fall.

India's wholesale price index, its main inflation gauge, slowed to a 3 1/2 year low of +4.7% on year in May from +4.9% in April. Inflation has been dropping over recent months, partly due to the Reserve Bank of India's tight monetary policy. The RBI is due to hold a policy meeting next week, when it will be under pressure to cut interest rates from 7.25% because of the falling inflation and stuttering economy, and despite the weak rupee.