India’s retail inflation rose to 4.82 percent in August, reaching its highest level in eight months and coming in slightly above the 4.80 percent expected by economists. This figure marks an increase from July’s 4.45 percent, driven primarily by a sharper rise in food prices to 5.95 percent and firmer fuel costs. Official data from the Ministry of Statistics showed uneven price movements, with some staples becoming costlier while other items saw eased prices.
The headline inflation rate sits above the Reserve Bank of India’s 4 percent medium-term target, though it remains within the central bank’s tolerance band of two to six percent. Economists stated that the data strengthens the case for the RBI’s Monetary Policy Committee to hold interest rates steady or act cautiously regarding rate cuts at its next review. Trading Economics data confirmed that the reading was the highest since December 2024.
Analysts attributed the year-on-year comparison partly to base effects from unusually subdued food prices a year ago. The Reserve Bank had previously warned of upward inflation risks in the second half of the fiscal year due to monsoon uncertainties affecting crop output.