Retail inflation climbs to 4.82% in August from 4.45% in July as food prices rise

India’s retail inflation rose to 4.82% in August 2026, up from 4.45% in July, as food prices remained elevated, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday. 

The August inflation reading is based on the Consumer Price Index (CPI) series, with 2024 as the base year. 

Rural and urban inflation 

Rural inflation increased to 5.23% in August, compared with 4.84% in July. Urban inflation rose to 4.31%, up from 3.96% in the previous month. 

The All India CPI stood at 108.74 in August, compared with 107.95 in July. The rural CPI rose to 109.27 from 108.34, while the urban index increased to 108.07 from 107.45. 

Food inflation remains elevated 

Inflation based on the All India Consumer Food Price Index (CFPI) rose to 5.95% in August from a year earlier. Food inflation stood at 6.13% in rural areas and 5.64% in urban areas. 

Among the major divisions, personal care, social protection, and miscellaneous goods and services recorded inflation of 15.17% in August. Restaurants and accommodation services saw inflation of 8.38%, while food and beverages inflation stood at 5.66%. 

Meanwhile, wholesale inflation rose to 9.92% and output prices of producers were 9.81% higher compared to August 2025. The RBI is legally mandated to keep CPI inflation at 4% in a band of 2-6%. However, this is the third month in a row that headline retail inflation has come in above 4%.

The central bank has projected CPI inflation for 2026-27 at 5%, with inflation estimated at 4.7% in the second quarter, 5.9% in the third quarter, and 5.5% in the fourth quarter. 

The RBI recently kept key short-term policy rates unchanged amid inflation concerns. Under its mandate, the RBI is tasked with keeping inflation within a target range of 2% to 6%. Concerns over a potential rate hike have intensified over the past month as a sustained rise in global oil prices threatens to fuel inflationary pressures, with Brent crude futures trading near $108 a barrel.

Rajeev Juneja, President, PHDCCI, said, "Among the food group, ginger, onion and garlic, staples of Indian cuisine, showed the highest inflation at 73.82%, 48.27% and 43.60% respectively. On the other hand, tomato and potato provided some respite, deflating at 31.09% and 13.14% in August, 2026 respectively. Rural India is particularly facing high food prices, with Food inflation touching 6.13%. With costs of staple food items skyrocketing, the cost pressures on the food and beverage industry, including food processing and restaurant and other services are imminent."

The CPI data is based on price information collected from 1,407 urban markets, including online markets, and 1,465 villages across all states and Union territories. Field staff from the National Statistical Office under MoSPI collect the data through personal visits on a weekly roster. 

The response rate in August 2026 was 100% for both rural and urban markets. The CPI data for September 2026 is scheduled to be released on October 12, 2026, or the next working day if October 12 is a holiday.