New Delhi, July 16 -- Retail inflation in India, which has been on a declining trend providing further respite to common people, is expected to head below RBI's 2 per cent lower tolerance band, this July, according to Nomura.

Continuing its downward trend, retail inflation in India hit a new over six-year low in June, at 2.1 per cent.

"Headline inflation moderated below market expectations...," multinational investment and brokerage firm Nomura said in a report this week. A sharp decline in prices was reported in a number of food categories, offsetting the seasonal uptick in vegetable prices.

Food and beverages inflation fell in June, with a sequential drop in prices of pulses, cereals, and spices, while higher prices were observed for...