Retail inflation rose to 7 percent in August from 6.71 percent in July, government data showed on Monday, 12 September.
The increase is majorly due to higher food prices.
For the eighth month in a row, the consumer price index-based inflation is above the Reserve Bank of India's (RBI) comfort level of 6 percent.
National Statistics office released data showing that the consumer price index-based inflation (CPI) was higher than a Reuters survey of economists in August, rising to 7 percent, in comparison to the 6.9 percent forecast and above the 6.71 percent in July.
Food inflation, which constitutes nearly half of the Consumer Price Index (CPI) basket, rose with the increase in prices of essential crops like wheat, pulses, and rice due to a record heatwave.
According to the data, inflation in food basket was 7.62 percent in August, whereas it was 6.69 percent in July, and 3.11 percent in August last year.
Restrictions have been placed on the export of wheat, sugar, and rice in order to keep local prices from increasing due to uneven rainfall patterns.
While crude oil prices have dropped in the recent weeks, fuel and light inflation rose by 10.8 percent.
The RBI's projections showed inflation continuing to stay above the 6 percent comfort level till early 2023.
(With inputs from PTI and NDTV.)
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