India’s retail inflation, based on the Consumer Price Index (CPI), stood at 4.82 per cent in August 2026, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI).
The inflation rate, based on the All India CPI with 2024 as the base year, measures the year-on-year change in consumer prices over August 2025. The August figure is provisional.
Rural areas continued to experience a higher rate of price rise than urban areas. Retail inflation stood at 5.23 per cent in rural areas, compared with 4.31 per cent in urban areas.
Food inflation remains elevated
Food prices remained a key source of inflationary pressure during the month.
The Consumer Food Price Index (CFPI) recorded year-on-year inflation of 5.95 per cent in August. Food inflation stood at 6.13 per cent in rural areas and 5.64 per cent in urban areas.
The food and beverages division recorded inflation of 5.66 per cent, above the headline CPI inflation rate.
Personal care, restaurants see sharp price increases
Among the major consumption divisions, personal care, social protection and miscellaneous goods and services recorded the highest inflation at 15.17 per cent.
This was followed by restaurants and accommodation services, where inflation stood at 8.38 per cent.
Inflation in paan, tobacco and intoxicants was recorded at 4.71 per cent, while transport services registered inflation of 4.60 per cent.
Education services recorded inflation of 3.73 per cent, while clothing and footwear saw prices rise by 3.56 per cent.
Inflation in furnishings, household equipment and routine household maintenance stood at 2.68 per cent. Housing, water, electricity, gas and other fuels recorded inflation of 2.61 per cent.
At the lower end, information and communication recorded inflation of 2.01 per cent, while recreation, sport and culture stood at 1.74 per cent.
Health recorded the lowest inflation among the tracked divisions at 1.34 per cent in August.
