Retail inflation rises to 4.82% in August
Retail inflation in India rose to 4.82% in August, driven primarily by an increase in food prices. The Reserve Bank of India maintains its mandate to keep inflation within the 2% to 6% range despite these pressures.
Why it matters
Rising inflation impacts consumer purchasing power and influences the central bank's interest rate decisions, affecting the broader economy.
Retail inflation increased to 4.82% in August, largely driven by higher food prices, according to government data released on Monday (September 14, 2026). The Consumer Price Index (CPI) based inflation was 4.45% in July.
Food inflation in August increased to 5.95% compared to 5.52% in the preceding month, according to CPI data released by the National Statistics Office (NSO). Reserve Bank has projected the CPI inflation for 2026-27 at 5%, with Q2 at 4.7%, Q3 at 5.9%, and Q4 at 5.5%.
The Reserve Bank of India (RBI) recently kept key short-term policy rates unchanged amid inflation worries. RBI's official mandate is to keep inflation within the acceptable range of 2% to 6%.
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