India's Retail Inflation Rises to 4.45% in July 2026 as Food Prices Remain Elevated

India's retail inflation, measured by the Consumer Price Index (CPI), increased marginally to 4.45% in July 2026, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI).

The latest reading marks a slight rise from 4.38% recorded in June, with persistent food inflation emerging as the primary driver despite relatively stable prices across several other sectors.

The July inflation figures are based on the revised Consumer Price Index (CPI) series with 2024 as the base year.

Food inflation remains above headline inflation

Food prices continued to exert pressure on household budgets during July.

The Consumer Food Price Index (CFPI) rose to 5.52%, compared to 5.32% in June, indicating that food inflation remains significantly higher than overall retail inflation.

The increase was more pronounced in rural India:

• Rural food inflation: 5.79%
• Urban food inflation: 5.05%

The data suggests rural households continued to face greater inflationary pressure, particularly in essential food items.

Vegetable prices show mixed trend

Several vegetables became cheaper during the month, helping moderate food inflation to some extent.

Year-on-year price changes included:

• Potato: Down 16.56%
• Lady's finger (Okra): Declined
• Peas: Declined
• Tomatoes: Declined

However, prices of several kitchen staples witnessed sharp increases.

Major gainers included:

• Ginger: Up 83.62%
• Garlic: Up 35.36%
• Onion: Up 22.54%

These increases continued to keep household food expenses elevated despite lower prices for some vegetables.

Silver, gold and jewellery prices surge

Precious metals remained among the biggest contributors to inflation in the miscellaneous category.

According to the latest CPI data:

• Silver jewellery inflation: 109.84%
• Gold, diamond and platinum jewellery: 32.98%

The sustained rally in precious metals has significantly increased costs for jewellery buyers during the year.

Rural inflation higher than urban inflation

Inflation continued to vary between rural and urban India.

The latest data showed:

• Rural retail inflation: 4.84%
• Urban retail inflation: 3.96%

The higher rural inflation reflects the larger share of food and essential commodities in household spending compared to urban consumers.

Housing and services inflation

While food remained the primary contributor, several service categories also recorded notable inflation.

Key categories included:

• Housing inflation: 2.22%
• Restaurants and accommodation services: 7.72%
• Personal care, social protection and miscellaneous services: 14.77%

These sectors continued to witness higher price increases compared to the overall CPI inflation rate.

What does the latest inflation data indicate?

Although the increase in headline inflation was modest, the continued rise in food prices suggests inflationary pressures remain uneven across sectors.

Economists note that while easing vegetable prices have provided some relief, higher prices of essential kitchen items and services continue to influence household budgets, particularly in rural India.

The government collected July price data from 1,407 urban markets, including online marketplaces, and 1,465 villages, achieving a 100% response rate across both rural and urban centres.

The next retail inflation data for August 2026 is scheduled to be released on September 14.