Retail inflation climbs to 4.82% in August, driven by food price gains

Retail inflation rose to 4.82% in August 2026, up from 4.45% in July, according to the Ministry of Statistics and Programme Implementation. The increase was largely driven by a sharper rise in food prices, with the Consumer Food Price Index recording 5.95% year‑on‑year inflation in August versus 5.52% in July.

CPI data show rural inflation at 5.23% and urban inflation at 4.31% in August, compared with 4.84% and 3.96% in July. Food inflation was led by onions, which rose 48.27% year‑on‑year, followed by garlic at 43.60% and ginger at 73.82%. Tomato prices fell 31.09% year‑on‑year, while potato prices dropped 13.14%.

Other inflationary categories included food and beverages at 5.66%, transport at 4.60%, clothing and footwear at 3.56%, housing, water, electricity, gas and other fuels at 2.61%, and health at 1.34%. Restaurants and accommodation services rose 8.38% year‑on‑year, and personal care, social protection and miscellaneous goods and services saw a 15.17% increase. The CPI data were collected from 1,407 urban markets and 1,465 villages across all states and Union Territories, with September figures scheduled for release on October 12.

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