Retail inflation for the month of August was marginally higher at 3.21 percent from 3.15 percent in the previous month on the back of higher food prices, according to official data released by the government on Thursday.
This is the thirteenth straight month wherein inflation has remained within RBI's inflation has remained below RBI's target of 4 percent. It could call for another round of key rate cut by the Reserve Bank of India at its next monetary policy review.
CPI (Consumer Price Index) food price inflation rose at 2.99 percent in August as against 2.36 in July.
Data on Industrial production, also released on the same day, jumped to 4.3 percent in July from 2.0 percent in June on the back of an uptick in core sector growth. The Index of Industrial Production (IIP) grew at 6.5 percent in July 2018.
The outlook for CPI inflation excluding food and fuel remains soft. CPI inflation for the first quarter of the financial year 2020-21 is projected at 3.6 percent.