The benchmark consumer-price index rose 3.28% from a year earlier, the same pace as in August.
Aided by a strong show in mining and electricity sectors, factory output growth for August 2017 came in at robust 4.3 per cent.
Food and beverages during the month under consideration recorded a rise of 1.76 per cent over the same month past year.
Meanwhile, the July IIP number was revised to 0.94 percent from 1.2 percent provisional estimates released last month.
In a boost to the economy, the factory output growth in August surged to 9-month high of 4.2 per cent, indicating an acceleration of industrial activities after the initial setback due to GST-related destocking.
On a sequential basis, the country's Consumer Food Price Index (CFPI) dropped to 1.25 per cent during the month under review when compared to 1.52 per cent in August 2017.
The latest print is lower than 4.39 per cent recorded in September previous year.
Analysts polled by Reuters had expected retail inflation to edge up to 3.60% last month from 3.36% in August.
Capital goods output, which is reflective of the private sector investment scenario, rose 5.4 percent in August compared with (-) 0.1 percent contraction in July.
Among non-food categories, the "fuel and light" segment's inflation rate accelerated to 5.56 per cent in September.
Data on inflation and industrial production growth was released by the Central Statistics Office.