Nifty Tips: New Delhi: India`s inflation possibly cooled further in August, data on Monday is expected to show, adding pressure on the guarded Reserve Bank of India (RBI) to cut interest rates again as soon as this month to spur economic growth.

With price pressures at record lows, anticipation are building that the RBI will lower borrowing costs by at least 25 basis points (bps) at its next policy scrutinize on September 29, after three cuts earlier this year.

Calls for a rate cut have grown louder after yearly worth growth slowed to 7 % in the April-June quarter from 7.5 percent in the previous quarter. And some statistician fear real growth is more sluggish than official figures suggest.

Arvind Panagariya, a top policy adviser to the government, said previous week said the economy needed 50-100 bps of rate cuts. Similar calls were made by Indian business leaders at a conference with Prime Minister Narendra Modi last Tuesday.

Annual consumer price increase, which the central bank tracks to set rates, likely eased to 3.6 percent in August due to lower fuel prices, from a record low of 3.78 % in July, according to analysts polled by Reuters.

Wholesale prices, another inflation gauge, are anticipated to have fallen for a 10th straight month, tumbling 4.40 percent on-year compared with a 4.05 percent fall in July.