RBI in its policy review last month kept interest rates unchanged and said it sees an upside risk to inflation.
The wholesale price-based inflation rose 0.16 per cent in August as food items and manufactured products turned costlier.
The Wholesale price index based (WPI) inflation was in the negative territory for four straight months -- April (-) 1.57 per cent, May (-) 3.37 per cent, June (-) 1.81 per cent and July (-) 0.58 per cent.
"The annual rate of inflation, based on monthly WPI, stood at (0.16 per cent) (provisional) for the month of August, 2020 (over August, 2019) as compared to 1.17 per cent during the corresponding month of the previous year," the commerce and industry ministry said in a statement on Monday.
Inflation in food articles during August stood at 3.84 per cent.
The rate of rise in potato prices stood at 82.93 per cent.
Inflation in vegetables stood at 7.03 per cent, while in onion it was (-) 34.48 per cent.
Fuel and power inflation fell 9.68 per cent in August, as against 9.84 per cent in the previous month.
Manufactured products, however, witnessed hardening of inflation at 1.27 per cent in August against 0.51 per cent in July.
The Reserve Bank of India (RBI) in its policy review last month kept interest rates unchanged and said it sees an upside risk to inflation.
The apex bank projected retention of inflation to moderate in October-March period.
Photograph: Rupak De Chowdhury/Reuters