Retail inflation in India decelerated to 6.83% in August from 7.44% in July but remained above the central bank’s target level. Food prices slowed to 9.84% from 11.51%. The bank maintained its key rate at 6.5% for the third consecutive meeting, but persistent inflation could increase borrowing costs. Last month, the government took steps to mitigate the impact of inflation by cutting cooking gas prices. Additional measures may be on the horizon, especially with upcoming state elections and a national vote in 2024.