What happened
CPI rose to 4.82% from 4.45% in July, food inflation 5.95%, WPI 9.92% — all released by MoSPI on 14 Sep 2026
India's CPI-based retail inflation rose to 4.82% in August 2026 from 4.45% in July, the third consecutive month above the Reserve Bank of India's 4% target, government data released on September 14 showed. CPI food inflation climbed to 5.95% from 5.52%, led by silver jewellery (+107.11%), ginger (+73.82%), onion (+48.27%), garlic (+43.60%) and gold/diamond/platinum jewellery (+35.53%).
The Wholesale Price Index posted 9.92% inflation in August, up from 9.78% in July — its fourth straight month above 9% and the second-highest in the 2022-23 base series. WPI fuel and power jumped to 22.93% from 20.05%, with mineral oils +38.48% and crude petroleum & natural gas +34.41%. Minerals oils, food articles, basic metals and chemicals were the broad drivers across groups.
RBI's FY 2026-27 CPI projection stands at 5.0% (Q2 4.7%, Q3 5.9%, Q4 5.5%) within its 2%-6% statutory band, but the trend is toward the upper bound. SBI Research now advocates 25 bps in October and another 25 bps in December; India Ratings expects WPI to reach 10.2% in September unless the West Asia crisis resolves. ICRA's Rahul Agrawal sees food inflation hardening further in Sept-Oct on unfavourable bases and sugar, risking festive sentiment.
Timeline
- 14 Sep 2026 — MoSPI released CPI/WPI August 2026 data
- SBI Research advocated 25 bps hike in October, 25 bps in December
- India Ratings expects WPI to hit 10.2% in September 2026
Key Numbers
- CPI 4.82% | Food CPI 5.95% | WPI 9.92% | Fuel WPI 22.93%
What Next
- October MPC meeting — RBI to decide on rate hike amid sticky inflation
- September WPI print expected at 10.2% per India Ratings
Why it matters for me
RBI faces mounting rate-hike pressure with SBI Research calling for 50 bps of hikes across October-December, household grocery bills rising
Daily Life · Money
General Public
Higher food prices at 5.95% food CPI directly raise household grocery bills, with silver, ginger, onion and garlic among the biggest monthly jumps.
Money · Work
Policy Watchers · Business Executives
With CPI above 4% for three straight months and WPI near 10%, RBI faces growing pressure to hike rates in the October MPC — borrowing costs for businesses and consumers could rise.
Work · Money
Business Executives
WPI fuel at 22.93% and elevated wholesale inflation across metals and chemicals raise input costs for manufacturers, squeezing margins through festive season.
What to remember
Third month above RBI's 4% target means monetary easing is off the table for now — the October MPC meeting is the next checkpoint.
India's retail inflation hit 4.82% in August, WPI 9.92% — RBI rate hike odds rise as food and fuel drive the surge.
Verified sources (4)
Retail inflation rises to 4.82% in August
↗India's WPI inflation hits 9.92% as CPI rises to 4.82%; will RBI hike rates?
↗WPI inflation rises to 9.92% in August on costlier food, fuel, manufactured items
↗CPI and WPI Index Numbers release for August 2026 (data cited by The Hindu, WION, NIE)
↗Claims and linked sources
10 claimsIndia's CPI-based retail inflation rose to 4.82% in August 2026 from 4.45% in July, marking the third consecutive month above the RBI's 4% target.
CPI food inflation increased to 5.95% in August 2026 from 5.52% in July, the primary driver of the retail inflation uptick.
Wholesale Price Index (WPI) inflation rose to 9.92% in August 2026 from 9.78% in July, remaining above 9% for the fourth consecutive month.
The Reserve Bank of India has projected CPI inflation for FY 2026-27 at 5.0%, with quarterly breakdowns of Q2 4.7%, Q3 5.9% and Q4 5.5%.
RBI's statutory inflation target band is 4% ±2 percentage points (2% to 6%), under which the August 4.82% print sits inside the range but trending toward the upper bound.
The top five CPI drivers in August 2026 were silver jewellery (+107.11%), ginger (+73.82%), onion (+48.27%), garlic (+43.60%) and gold/diamond/platinum jewellery (+35.53%).
WPI fuel and power basket inflation rose to 22.93% in August 2026 from 20.05% in July, led by mineral oils/petroleum products at +38.48% and crude petroleum & natural gas at +34.41%.
SBI Research now advocates for a 25-bps rate hike in October 2026 and another 25-bps in December 2026, citing sticky WPI/CPI and Brent crude futures near $108/barrel.
India Ratings (Ind-Ra) expects wholesale inflation to rise to 10.2% in September 2026 and remain elevated through 2026 unless a permanent solution is found for the West Asia crisis.
ICRA's Principal Economist Rahul Agrawal expects CPI food inflation to harden further in September-October 2026 on an unfavourable base and sequential hardening in items such as sugar, likely souring festive sentiment.