India June services growth remained strong despite high price inflation

India's service sector growth weakened to a three-month low but remained resilient in June amid strong demand, according to a private business survey on Wednesday, despite prices rising at their quickest pace in nearly six years.

Sustained growth in the sector, which accounts for around 60% of overall output, indicates Asia's third-largest economy will continue to outpace many of its major peers over the coming quarters.

The S&P Global India services Purchasing Managers' Index (PMI) fell to 58.5 last month from 61.2 in May and was lower than a Reuters poll prediction for 60.2.

But it was still firmly above the 50-mark separating growth from contraction. It has been above breakeven for nearly two years, the longest stretch since August 2011.