Mumbai, Sept. 15 -- Underlying inflation pressures in India may be stronger than indicated by the year-on-year numbers, with the recent monthly trend in core inflation pointing to faster price increases, according to a report by ICICI Bank Research.

Core inflation excluding gold and silver rose 0.46 per cent month-on-month in August, broadly in line with the average monthly increase of 0.42 per cent recorded over the previous five months.

The report said that if the recent monthly trend is annualised, underlying core inflation would be "much higher than what the YoY number shows".

On a year-on-year basis, core inflation rose to a 15-month high of 4.2 per cent in August from 3.9 per cent in July, largely due to higher gold and silver je...