India's wholesale price index, the country's main gauge of inflation, climbed to a six month high of 6.1% in August from 5.79% in July and topped consensus of 5.8%.
The rise was driven by an 18.2% jump in food inflation and an increase in energy prices.
The climb strengthens the case for Raghuram Rajan, the new governor of the Reserve Bank of India, to keep interest rates high at his first policy meeting on Friday. The outcome of the FOMC's get-together on Tuesday and Wednesday may also have an impact on the RBI's deliberations.
Sensex -0.1%, USD-INR -0.9% to 62.705 rupees, India 10-year bond yields +1 bps to 8.5%.