Retail inflation likely picked up in September, driven by higher food prices, but will remain comfortably below the Reserve Bank of India's target and allow room for further policy easing, a Reuters poll showed.
The consumer price index was expected to rise 4.3% last month, with forecasts in the survey of over 20 economists ranging between 3.6% and 5.0%.
In August, consumer inflation fell to a record low of 3.66%, down from nearly 9% last year.
Falling commodity prices, which have fueled a global disinflationary trend, pushed Indian inflation down over the past year, giving the RBI room to ease monetary policy four times since January, bringing its key repo rate down to a 4-1/2 year low of 6.75%.
Even if inflation picks up in September as economists predict, it would still be comfortably below the RBI's 6% target for January.
"The central bank's CPI inflation target of 6% for January 2016 is unlikely to come under threat, as core inflation should remain anchored amid signs of continued economic slack," said Capital Economics' Shilan Shah in a research note.
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Still, with rainfall 14% below normal in the June-September monsoon season, food prices could be affected in coming months.
The RBI estimates inflation will be 5.8% in January.
Industrial output is expected to have grown 4.8% in August, faster than the 4.2% seen in July. Poll forecasts ranged from 2.2 to 6.7%.
Although a survey last week showed manufacturing activity slowed to a seven-month low in September, factory production has been growing above 2% since November.