India’s Retail Inflation Climbs to 4.82% in August as Food Prices Rise

India’s retail inflation accelerated in August 2026. Consumer Price Index-based inflation (India retail inflation August 2026) rose to 4.82 percent from 4.45 percent in July.

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The August figure is provisional. The latest data show renewed price pressure across food and several consumer categories.

Food Inflation Emerges as the Major Pressure Point

Food inflation remained a major driver of the increase. Inflation based on the Consumer Food Price Index rose to 5.95 percent in August from 5.52 percent in July.

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Rural food inflation stood at 6.13 percent. Urban food inflation was lower at 5.64 percent.

Onion and garlic prices recorded particularly sharp increases. Onion inflation jumped to 48.27 percent in August from 22.54 percent in July.

Garlic inflation also remained high at 43.60 percent. However, some vegetables became cheaper. Tomato and potato prices recorded negative inflation during the month.

Rural Inflation Remains Higher Than Urban Inflation

Rural India recorded retail inflation of 5.23 percent in August. Urban inflation stood at 4.31 percent.

Both figures were higher than their July levels. Rural inflation had stood at 4.84 percent in July, while urban inflation was 3.96 percent.

Telangana recorded the highest retail inflation among states and Union Territories at 6.27 percent. Dadra and Nagar Haveli and Daman and Diu followed at 6.22 percent.

West Bengal remained below the national average. Retail inflation in the state stood at 3.28 percent. Urban inflation was 2.85 percent, while rural inflation stood at 3.62 percent.

Inflation Rises for Third Straight Month

India’s retail inflation has increased for three consecutive months. Inflation stood at 3.93 percent in May and rose to 4.38 percent in June.

It then increased to 4.45 percent in July before reaching 4.82 percent in August. The trend has renewed attention on the inflation outlook and monetary policy.

The Reserve Bank of India’s policy stance is now under closer watch. The repo rate currently stands at 5.25 percent. A sustained rise in inflation could influence future policy decisions, although the timing of any rate move remains uncertain.