Retail inflation in May cooled to a new record low of 2.18 per cent from 2.99 per cent in April, Indian government data showed. May`s inflation level is the lowest since the series began in 2012 and remains below the RBI medium-term target of 4 per cent for the seventh month in a row. A Reuters poll of 25 economists had expected consumer prices in May to rise 2.60 per cent from the previous year. This data would increase the pressure on the RBI to cut interest rates in the days to come. India Inc and the Finance Ministry have been clamouring for a rate cut from the central bank to spur growth given that consumers prices have remained low for a while. India`s GDP (gross domestic product) grew at a slower-than-expected 6.1 per cent in the March quarter, its slowest pace in more than two years and down from 7 per cent in the previous quarter. The new series of industrial output rose 3.1 per cent in April after growing 2.7 per cent in March. The growth was mainly on the back of a revision in the base year to 2011-12 from the previous 2004-05. The Reuters poll had expected factory output to have risen 3 per cent. The RBI is waiting to see if inflation will remain low, especially after the implementation of GST (goods and services tax) from July 1. GST is touted as the biggest tax reform since India`s independence in 1947 and is expected to add 2 per cent to the country`s GDP.