NEW DELHI (Reuters) – India’s retail inflation accelerated to 2.07% in August as food prices inched up, but stayed within the central bank’s tolerance band for the tenth consecutive month.

Annual retail inflation quickened from a revised 1.61% in July and was above a Reuters poll of 2.1%.

The Reserve Bank of India is mandated to not let inflation overshoot its tolerance range of 2%-6% for more than three quarters in a row.

Food prices in August fell 0.69% compared with a decline of 1.76% in July while vegetable price fell 15.92% from a fall of 20.69% in the previous month.

Food prices are expected to rise following above-normal rainfall in August, and an expectation of similar showers in September, which could damage India’s summer-sown crops like rice, cotton, soybean and pulses.

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