We present an inflationary scenario based on a phenomenologically viable model with direct gauge mediation of low-scale supersymmetry breaking. Inflation can occur in the supersymmetry-breaking hidden sector. Although the reheating temperature from the inflaton decay is so high that the gravitino problem seems to be severe, late time entropy production from the decay of the pseudomoduli field associated with the supersymmetry breaking can dilute gravitinos sufficiently. We show that gravitinos are also produced from the pseudomoduli decay and there is a model parameter space where gravitinos can be the dark matter in the present universe.