Inflation in August jumps to ~6.1% YoY (Expectation 5.6% ) compared to 5.8% in July. The spurt was primarily led by rise in food prices which increased sharply on sequential basis (led by vegetables and protein-rich component) and rise in imported inflation (led by increase in fuel prices). Food inflation should ease with arrival of fresh crop of vegetables and good monsoon. Meanwhile, imported inflation may remain high as diesel price hikes are likely to continue and the impact of weak INR would mean into higher imported raw material costs.