India's annual retail inflation eased to 6.83% in August from a 15-month high of 7.44% in July as food prices moderated, government data showed on Tuesday.
A Reuters poll of 45 economists had forecast a rate of 7%.
Food inflation, which accounts for nearly half of the overall basket, was up 9.94% in August compared with a rise of 11.51% in July.
Food prices have been a key concern for policymakers since last year as erratic weather conditions have hurt the output of vegetables, milk and cereals.
Last month, Reserve Bank of India Governor Shaktikanta Das said food price shocks posed a risk to the "anchoring of inflation expectations" and the central bank would remain watchful.
Inflation has been above the central bank's 2%-6% target band for seven months out of the last 12. (Reporting by Nikunj Ohri; editing by Christina Fincher)