New Delhi, Sept. 6 -- India's headline retail inflation is expected to accelerate to 4.88 per cent in August from 4.44 per cent in July, driven by persistent food price pressures and a further rise in fuel inflation, according to a report by Union Bank of India.

"We expect India's Consumer Price Inflation (CPI) to rise to 4.88% in August' 26 from 4.44% in July, marking the second consecutive monthly acceleration and highest reading in the 23-24 series," the report said.

Food inflation is projected to rise to 6.03 per cent in August from 5.24 per cent in July, driven by continued price pressures across key food items. However, the composition of food inflation is expected to shift, with vegetable inflation projected to moderate sharply t...