Retail inflation quickens to 4.8% as food gets costlier

India's retail inflation accelerated to 4.82% in August 2026, rising from 4.45% in July, as food prices and other key components of the consumer basket put pressure on the economy, according to government data released on Monday. Rural and urban inflation figures stood at 5.23% and 4.31% respectively, showing rural inflation was higher than urban.

Economists had predicted inflation at 4.80% for the month. July's reading came after the RBI's medium-term target of 4% was breached in June, when inflation rose to 4.38% from 3.93% in May. The 4.82% August reading marked the highest since India adopted a revised CPI series earlier this year. Sugar prices hit a record high in August, likely impacting inflation during the month.

India's sugar export ban, which began in May, will continue until the end of September. Jewellery prices remained a major source of inflationary pressure, with silver jewellery showing the highest increase at 107.11% in August, up from 109.89% in July. Gold, diamond, and platinum jewellery inflation rose to 35.53% in August, up from 32.98% in July.