YUM fails transaction test with error at least 5MB more space needed on the /var/lib/rpm filesystem.

Issue

• I tried to upgrade from Red Hat Enterprise Linux 7.2 to Red Hat Enterprise Linux 7.3 with yum update command. But it failed with the following transaction check error.

Transaction check error:
  installing package glibc-2.17-157.el7.i686 needs 641KB on the /var/lib/rpm filesystem
  installing package nss-softokn-freebl-3.16.2.3-14.4.el7.i686 needs 745KB on the /var/lib/rpm filesystem
  installing package nspr-4.11.0-1.el7_2.i686 needs 805KB on the /var/lib/rpm filesystem
  installing package nss-util-3.21.0-2.2.el7_2.i686 needs 860KB on the /var/lib/rpm filesystem
  installing package libcom_err-1.42.9-9.el7.i686 needs 959KB on the /var/lib/rpm filesystem
  installing package zlib-1.2.7-17.el7.i686 needs 1017KB on the /var/lib/rpm filesystem
  installing package libgcc-4.8.5-11.el7.i686 needs 2MB on the /var/lib/rpm filesystem
  installing package glibc-devel-2.17-157.el7.i686 needs 2MB on the /var/lib/rpm filesystem
  installing package libstdc++-4.8.5-11.el7.i686 needs 3MB on the /var/lib/rpm filesystem
  installing package pcre-8.32-15.el7_2.1.i686 needs 3MB on the /var/lib/rpm filesystem
  installing package nss-softokn-3.16.2.3-14.4.el7.i686 needs 3MB on the /var/lib/rpm filesystem
  installing package nss-3.21.0-17.el7.i686 needs 3MB on the /var/lib/rpm filesystem
  installing package cyrus-sasl-lib-2.1.26-20.el7_2.i686 needs 3MB on the /var/lib/rpm filesystem
  installing package libsepol-2.5-6.el7.i686 needs 3MB on the /var/lib/rpm filesystem
  installing package libselinux-2.5-6.el7.i686 needs 4MB on the /var/lib/rpm filesystem
  installing package openssl-libs-1:1.0.1e-60.el7.i686 needs 4MB on the /var/lib/rpm filesystem
  installing package krb5-libs-1.14.1-26.el7.i686 needs 4MB on the /var/lib/rpm filesystem
  installing package libcap-ng-0.7.5-4.el7.i686 needs 4MB on the /var/lib/rpm filesystem
  installing package audit-libs-2.6.5-3.el7.i686 needs 4MB on the /var/lib/rpm filesystem
  installing package pam-1.1.8-18.el7.i686 needs 5MB on the /var/lib/rpm filesystem
  installing package openldap-2.4.40-13.el7.i686 needs 5MB on the /var/lib/rpm filesystem
  installing package xz-libs-5.2.2-1.el7.i686 needs 5MB on the /var/lib/rpm filesystem

• Error Summary(Disk Requirements):

  At least 5MB more space needed on the /var/lib/rpm filesystem.

• These packages don't provide files in /var/lib/rpm. What mechanism is causing this failure?
• We only allocate 256MB to /var/lib/rpm, this seems perfectly fine for the normal space usage of that file system.

Filesystem                            Size  Used Avail Use% Mounted on
/dev/mapper/vg_system-lv_varlibrpm  240M   53M  172M  24% /var/lib/rpm