Retail inflation rose to an 8-month high of 4.82% in August, with food inflation reaching 5.95%, putting pressure on household budgets of the common people.
The inflation front has once again become a cause for concern for the common person. In August 2026, the country's retail inflation rate rose to 4.82 percent, the highest level in the last eight months.
This figure was 4.45 percent in July. This increase has put pressure on the household budgets of ordinary people.
According to the data, food inflation, which is the inflation of food and beverage items, reached 5.95 percent in August. This includes all essential items like grains, vegetables, fruits, milk, and spices.
This increase is particularly worrying as it directly affects every household.
This is the third consecutive month that retail inflation has remained above the Reserve Bank of India's (RBI) comfort level of 4 percent.
It was 3.93 percent in May, which increased to 4.38 percent in June and 4.45 percent in July. Now in August, it stands at 4.82 percent, the highest in the eight months of data available for the new CPI series.
The prices of some vegetables are a major factor behind this surge in inflation. These vegetables played a significant role in disrupting the kitchen budget.
Besides these, inflation for silver jewelry was 107.11%, and prices for gold, diamond, and platinum jewelry were 35.53% higher on an annual basis.
However, some vegetables also provided relief to the common people. In August 2026, tomato prices were 31.09% lower on an annual basis. Meanwhile, potato prices also registered a decline of 13.14%.
The data shows that the impact of inflation has been greater in rural areas compared to urban areas.
In August, retail inflation in rural areas was 5.23%, while it was recorded at 4.31% in urban areas. Overall food inflation increased from 5.52% in July to 5.95% in August.
The impact of inflation is not limited to just food items. Inflation for restaurant and hotel services was 8.38%, while inflation for personal care and other services was recorded at 15.17%.
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