India’s Inflation Quickens for First Time in 10 Months (2)

India’s inflation accelerated for the first time in 10 months in August, though low enough for the central bank to keep the door open for interest rate cuts if economic growth takes a knock.

The consumer price index rose 2.07% from a year earlier last month, according to data released Friday by the Statistics Ministry. That’s slightly lower than the 2.11% forecast by economists in a Bloomberg survey and compares with a revised 1.61% for July. The Reserve Bank of India aims to keep inflation within 2%-6%.

The 10-year benchmark yield closed 2 basis points higher at 6.49%.

The ...