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The government's benchmark inflation index rose 1.61percentt last month, compared with an increase of 0.23percentt in June.
In March, India's benchmark inflation — the wholesale index — fell to its lowest level in more than three years at 5.96 percent, but the consumer price index remained elevated at 10.39 percent.
On Thursday, the government reported that the wholesale price index, the nation's benchmark inflation indicator, fell to 12.4% for the week ending Aug. 16, from 12.6% the previous week.
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Non-pensioner benefits are likely to be increased next year by about 1percentnt, below September's benchmark 2.2percentnt inflation figure".
The benchmark IPCA inflation index rose 1.31percentt in August, down from a 1.61percentt increase in July, as the effects of government-regulated increases in electricity, telephone and gasoline prices dissipated.
In September, the wholesale price index, India's benchmark for inflation, hit a seven-month high at 6.46 percent, while the consumer price index rose 9.84 percent from the same month last year.
Under the stability pact signed by government leaders and employers' and employees' associations and which sets out specific benchmarks on inflation, the deficit and the exchange rate spending on public services will be reduced.
The report, released by the Labor Department, is considered a benchmark measure of inflation.
The report, released Friday by the Labor Department, is considered a benchmark measure of inflation.
Mr. Subbarao, the bank governor, made the move on Friday after the benchmark wholesale-price inflation rate touched 9.89 percent in February, according to the commerce ministry.
But these certificates, like the 35th issue of five-year certificates (at 1.35percentnt AER [annual equivalent rate]) plus index-linking) do not track the Consumer Price Index, which is the Bank of England's inflation benchmark.
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