August retail inflation at 3.65 vs 3.60 in July govt
August food inflation at 5.66 vs 5.42 in July govt
August vegetable prices at 10.71 vs 6.83 in July govt
August core inflation at 3.33.4 economists

NEW DELHI, Sept 12 Reuters India39;s August retail inflation remained below the central bank39;s target of 4 for the second consecutive month, but vegetable prices continued to soar, dampening hopes of a dovish stance in the next monetary policy meeting.

Annual retail inflation was at 3.65 in August, higher than the revised 3.60 in July and economists39; forecast of 3.5.

India39;s key inflation gauge slipped below the Reserve Bank of India39;s 4 target in July after a gap of nearly five years, largely due to the highbase effect.

Prices of food, which account for nearly half of the retail inflation, rose 5.66 in August, compared to a 5.42 rise in the previous month.

Vegetable prices rose 10.71 yearonyear in August against a 6.83 rise in the previous month. The inflation rate for cereals was 7.31 in August compared to 8.14 in the previous month, while that for pulses was 13.6 against 14.77 in July.

The slight uptick in August inflation was largely led by surprise on food prices, Upasna Bhardwaj, an economist at Kotak Mahindra Bank said.

Risks from spiking food inflation remain but the sudden plunge of global oil prices to a near a 3year low could partly offset them.

Abovenormal rainfall due to the delayed withdrawal of the annual monsoon could damage…