What happened
MoSPI's provisional CPI (base 2024) on September 14 showed headline retail inflation at 4.82% in August 2026, up 37 bps from 4.45% in July.
India's retail inflation accelerated to 4.82% in August 2026, up from 4.45% in July, according to provisional CPI data (base 2024) released by MoSPI on September 14. The 37 basis-point rise marks the third straight month above RBI's 4% median target.
Food inflation drove the jump, with CFPI at 5.95% versus 5.52% in July. Sharpest rises: silver jewellery 107.11%, ginger 73.82%, onion 48.27%, garlic 43.60% and jewellery 35.53%. Tomato (-31.09%) and potato (-13.14%) cooled.
The rural-urban gap widened to 5.23% rural (from 4.84%) vs 4.31% urban (from 3.96%). By division, personal care/misc services hit 15.17%, restaurants & accommodation 8.38%, food & beverages 5.66%; health was lowest at 1.34%. CPI indices: All-India 108.74, rural 109.27, urban 108.07.
Wholesale WPI also rose to 9.92% from 9.78% on food, fuel and manufactured prices. RBI projects 2026-27 CPI at 5% (Q2 4.7%, Q3 5.9%, Q4 5.5%) within its 2-6% band. Reuters says the print strengthens the case for a hike after rates were held. Next CPI release is October 12, 2026.
What happened
On September 14, MoSPI released provisional CPI data for August 2026 with base year 2024. Headline at 4.82% and food at 5.95% both rose sequentially. Data covered 1,407 urban markets and 1,465 villages with 100% response rate. Next release is October 12 for September data.
Why it matters
CPI above 4% for three months tests RBI's 4% ±2% framework and its 5% FY27 projection (Q2 4.7%, Q3 5.9%, Q4 5.5%). With WPI at 9.92%, input costs stay elevated. Households feel food-price volatility; investors watch for policy tightening.
Which items moved most
- Costlier: silver jewellery 107.11%, ginger 73.82%, onion 48.27% (from 22.54%), garlic 43.60%, gold/jewellery 35.53%
- Cheaper: tomato -31.09% (from -4.60%), potato -13.14% (from -16.56%); health inflation lowest at 1.34%
- Highest divisions: personal care/misc 15.17%, restaurants & accommodation 8.38%, food & beverages 5.66%
Why it matters for me
Higher food costs — especially onion, ginger and garlic — lift household bills and keep inflation above RBI's target, raising odds of tighter policy.
Money · Daily Life
General Public
Household grocery bills rise as food inflation hits 5.95% — onion, ginger and garlic sharply costlier, even as tomato and potato cool.
Money · Work
Investors Traders · Business Executives
Third month above RBI 4% target strengthens rate-hike expectations, affecting loan costs and market positioning before October CPI.
Daily Life
General Public
Rural consumers face steeper squeeze at 5.23% inflation versus 4.31% urban, widening the cost-of-living gap.
What to remember
Food-driven inflation is back above 4% for the third month — watch grocery and rate signals until October 12 data.
CPI at 4.82% in August — food at 5.95%, rural hit harder. Third month above RBI 4% target.
Verified sources (6)
Retail inflation rises to 4.82% in August
↗India's retail inflation rises to 4.82% in August
↗Retail inflation climbs to 4.82% in August from 4.45% in July
↗CPI inflation in August at 4.82% YoY led by food inflation
↗CPI inflation rises to 4.82% in August 2026: Which everyday items became costlier and which got cheaper?
↗India inflation rises to 4.82% in August, strengthening case for rate hike
↗Claims and linked sources
6 claimsIndia's retail inflation (CPI, base year 2024) rose to 4.82% year-on-year in August 2026, up from 4.45% in July 2026 — a 37 basis-point sequential rise.
Food inflation (CFPI) increased to 5.95% in August 2026, up from 5.52% in July.
Rural inflation was 5.23% in August 2026, up from 4.84% in July; urban inflation was 4.31%, up from 3.96%.
By expenditure division, personal care/social protection/miscellaneous goods & services recorded the highest inflation at 15.17%, restaurants & accommodation at 8.38%, and food & beverages at 5.66%. Health was lowest at 1.34%.
Wholesale price-based (WPI) inflation rose to 9.92% in August 2026 from 9.78% in July, on higher food, fuel and manufactured-item prices.
Reuters frames the 4.82% August reading as strengthening the case for an RBI rate hike; RBI had recently kept key short-term policy rates unchanged amid inflation worries.