India's August retail inflation rises to 4.82% from 4.45% in July

India’s retail inflation rose to 4.82 per cent in August 2026, up from 4.45 per cent in July, mainly due to a rise in food prices, according to data released by the National Statistics Office (NSO) on Monday.The Consumer Price Index (CPI)-based inflation recorded a 37-basis-point increase during the month, marking a reversal from the moderation seen in recent months.
Food inflation was a key driver of the increase, rising to 5.95 per cent in August from 5.52 per cent in July. The increase in food prices is expected to remain an important factor influencing the overall inflation trajectory in the coming months.The latest inflation reading comes against the backdrop of the Reserve Bank of India’s (RBI) inflation target. The central bank has projected CPI inflation for 2026-27 at 5 per cent, with inflation estimated at 4.7 per cent in the second quarter, 5.9 per cent in the third quarter and 5.5 per cent in the fourth quarter.
The RBI recently kept key short-term policy rates unchanged, maintaining its cautious stance amid inflation concerns. Under its mandate, the central bank is required to keep inflation within the 2-6 per cent tolerance band.Meanwhile, wholesale price-based inflation also increased in August, rising to 9.92 per cent from 9.78 per cent in July. The rise was attributed mainly to higher prices of food, fuel and manufactured products.

(Business Correspondent)