WPI inflation eased to 4.5% in Aug'18 from 5.1% in Jul'18. The softening was led by food inflation at (-) 2.3% versus (-) 0.9% in Jul'18. However, cereal inflation inched up by more than 150bps to 5.1% in Aug'18. While both retail and wholesale inflation fell in Aug'18 from Jul'18 levels, the 5% fall in INR since last policy implies RBI is likely to raise rates by 25-50bps in its October policy. Much depends upon the trajectory of INR till policy decision....