The tone of the policy is likely to be dovish,” Union Bank of India executive director Vinod Kathuria said. Retail inflation, based on Consumer Price Index (CPI), dropped to multi-year low at 2.99 per cent in April over last year, mainly due to lower cost of food items, including pulses and vegetables. CPI inflation stood at 5.47 per cent in April 2016. At the same time, inflation based on the wholesale price index slipped to a four-month low of 3.85 per cent in April as both food articles and manufactured items showed cooling in prices. GST, which government intends to roll out from July 1, is likely to be inflation neutral as per official estimates.