Retail inflation in fell to 6.83 percent in August from 7.4 percent in July, according to government data released on Sept 12. Analysts expected September inflation to remain high due to rising cereal prices. Food price inflation was 9.94% in July 2023.

According to data, overall inflation in rural and urban areas was 7.02 percent and 6.59 percent, respectively, while CFPI was 9.67 percent and 10.42 percent.

CPI core inflation in August was 4.8 percent, down from 4.9 percent in July. According to one poll, the inflation rate is 7%.

The retail inflation in India rose to a 15-month high of 7.4 per cent in July owing to rise in food prices spurred by seasonal fluctuations. Led by vegetables, food inflation in India soared to an over three-year high of 11.5% in July, pushing headline inflation to 7.44 per cent.

In an interview with Global Markets Forum (GMF), MPC member Jayanth Varma stated that there was a much greater urgency to bring inflation within the RBI's comfort band than to bring it to the mandated medium-term target of the centre of the band.

Last week, RBI Governor Shaktikanta Das stated that the central bank expects inflation to become moderate beginning in September.

"We anticipate that overall inflation will begin to moderate in September.August inflation will be very high once again, but we expect inflation to fall beginning in September," he had predicted. According to Das, tomato prices have already dropped, and retail prices for other vegetables are expected to fall beginning this month.