In its monetary policy statement on 10 August, the Reserve Bank of India (RBI) is likely to remind us yet again that the war on inflation is not over. Why? A couple of days after the policy announcement, the official consumer inflation data for July will be released. If most forecasters are right, it is likely to print well above the RBI’s upper tolerance limit of 6%. Besides, there is the associated risk of an upward shift in the future inflation trajectory.