New Delhi, Sept. 15 -- Inflationary pressures have begun to build up. Government data shows consumer inflation climbed to 4.8% in August, year-on-year. This marked the third-straight month that this gauge, which RBI tracks for framing monetary policy, has topped the central bank's 4% target.

Separate government data, also released on Monday, showed wholesale inflation inched up to 9.9% in August compared with 9.8% in July. Both the readings are in line with economists' expectations as deficient rainfall seems to have hurt farm output and driven up food prices. These pressures could intensify in the months ahead.

More worryingly, Brent crude oil prices hit $107 a barrel amid a flare-up in the West Asia conflict. This could send fuel pric...