According to data released by the Ministry of Statistics and Programme Implementation, India’s inflationary pressures strengthened in August 2026, with both retail and wholesale inflation rising.
- Retail CPI inflation increased to 4.82%, the highest level of 2026 so far, from 4.45% in July.
- Food inflation rose to 5.95%, mainly due to sharp price increases in onion, garlic and ginger.
- Wholesale WPI inflation climbed to 9.92%, led by higher fuel and power, food, and manufactured product prices.
- WPI fuel and power inflation reached 22.93%, while manufactured products recorded a series-high 8.37%.
- With CPI remaining above the RBI’s 4% medium-term target, persistent food and fuel price pressures could make monetary policy more challenging.
- Rising crude oil prices and West Asia tensions may add further inflationary pressure, potentially increasing the likelihood of RBI rate hikes.
