India's retail inflation, measured by the Consumer Price Index (CPI), accelerated to 4.82% in August 2026. This marks an increase from 4.45% recorded in July, largely propelled by a significant surge in food item costs, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Monday.
Food Price Surge Fuels Inflation
Food inflation emerged as the primary driver behind the overall rise. The Consumer Food Price Index (CFPI) registered a year-on-year inflation rate of 5.95% in August, up from 5.52% in the preceding month. Specific food items experienced dramatic price increases:
- Onions: 48.27% year-on-year increase
- Garlic: 43.60% year-on-year increase
- Ginger: A staggering 73.82% year-on-year increase
Conversely, some food items saw price declines, with tomato prices falling by 31.09% and potato prices by 13.14% compared to the previous year.
Rural vs. Urban Inflation Trends
The inflation impact varied across different regions. Rural areas witnessed a CPI of 5.23% in August, an increase from 4.84% in July. Urban inflation also rose, reaching 4.31% in August compared to 3.96% in July. Similarly, rural food inflation stood at 6.13%, while urban food inflation was 5.64%.
Inflation Across Other Categories
Beyond food, other sectors also contributed to the overall inflation figures:
- Food and Beverages: 5.66%
- Transport: 4.60%
- Clothing and Footwear: 3.56%
- Housing, Water, Electricity, Gas, & Other Fuels: 2.61%
- Health: A relatively subdued 1.34%
However, prices for restaurants and accommodation services saw a notable 8.38% increase year-on-year. Personal care, social protection, and miscellaneous goods and services experienced a much higher inflation rate of 15.17%.
Significant Price Hikes in Select Items
Among individual items tracked by the government, silver jewellery recorded the steepest increase at 107.11%. Other significant rises included gold, diamond, and platinum jewellery at 35.53%.
Data Collection and Methodology
The August 2026 CPI data utilizes 2024 as the base year for its series. MoSPI collected price data from 1,407 urban markets, including online platforms, and 1,465 villages across all Indian states and Union Territories to compile these figures. The CPI data for September is anticipated for release on October 12.