India’s inflation rose slightly to 3.65 percent in August, compared with 3.6 percent in the previous month, as a favourable base from last year helped contain consumer inflation.

Inflation had risen to 6.8 percent in August 2023.

The consumer price index print is a tad higher than the Moneycontrol poll median of 3.5 percent. Economists at the MC poll ranged between 3.2 – 4 percent.

Although food inflation remains benign, some vegetables showed signs of a pickup,

The Crisil thali index released earlier this week indicated a pickup in onion and potato prices.

“An on-year uptick of Rs 15 per kg and Rs 13 per kg in onion and potato retail prices, respectively, due to lower rabi arrivals capped the decline in costs of both veg and non-veg thalis,” Crisil noted.

The Reserve Bank of India had predicted inflation would settle at 4.4 percent for the fourth quarter. However, a reading below 4 percent for two consecutive months suggests a lower trajectory.

According to most experts, India’s inflation is likely to settle at 4.5 percent this fiscal year.