ECONOMY
Food, jewellery stoke CPI inflation to 4.82%; WPI inflation too surges to 9.92%
- IBJ Bureau
- Sep 15, 2026
Retail inflation accelerated to 4.82 per cent in August 2026 from 4.45 per cent in July, as food prices and other key components of the consumer basket exerted pressure on the economy, according to data released by the government on Monday.
The latest reading of the Consumer Price Index (CPI)-based inflation shows that price pressures are beginning to build after inflation remained relatively subdued through much of the first half of the year.
Rural CPI inflation came in at 5.23 per cent in August compared with 4.31 per cent in urban areas.
The August inflation also marked the highest reading since India adopted its revised CPI series with a new base year and updated consumption basket earlier this year.
The RBI is mandated to maintain headline retail inflation at 5 per cent for FY27.
Sugar prices hit a record high in August and impacted inflation during the month.
India’s ban on sugar exports to cool domestic prices, which began in May, will stay in place until end-September.
Jewellery prices remained a major source of inflationary pressure in August, with silver jewellery recording inflation of 107.11 per cent.
Rise in jewellery prices was the highest among the key items tracked in the CPI basket, although they were lower than the 109.89 per cent surge registered in July.
Retail food inflation rose to 5.95 per cent in August from 5.52 per cent in July, with rural food inflation at 5.64 per cent and urban food inflation at 6.13 per cent.
Onion inflation more than doubled to 48.27 per cent in August from 22.54 per cent in July, while prices of garlic rose by 43.60 per cent from 35.36 per cent during the same period.
WPI inflation shoots up: The Wholesale Price Index (WPI)-based inflation increased to 9.92 per cent in August from 9.78 per cent in July, official data released on Monday showed.
The wholesale inflation print is the second-highest in the new WPI series with 2022-23 as the base year.
In August, wholesale food inflation rose to 7.05 per cent from 6.65 per cent in July.
In manufactured items, Wholesale prices stood at a series high of 8.37 per cent compared with 8.29 per cent in July.
In the fuel and power basket, WPI-based inflation was 22.93 per cent in August against 20.05 per cent in July.
Report By
View Reporter News