India’s retail inflation based on the Consumer Price Index (CPI) stood at 4.82% in August 2026, according to provisional figures released by the Ministry of Statistics and Programme Implementation (MoSPI). The latest data measures the year-on-year change in consumer prices compared with August 2025.
The August inflation figures indicate that rural consumers faced a higher rate of price rise than their urban counterparts during the month.
According to the official data, inflation in rural areas was recorded at 5.23%, while the corresponding figure for urban areas stood at 4.31%.
Food Inflation Rises to 5.95%
Food prices continued to contribute significantly to overall inflation in August. The Consumer Food Price Index (CFPI) recorded year-on-year inflation of 5.95% in August 2026, based on provisional data.
Food inflation was higher in both rural and urban markets compared with the headline CPI figure. Rural food inflation stood at 6.13%, while urban areas recorded 5.64%.
The figures highlight continued pressure on household food expenses, particularly in rural regions.
Inflation Rate Across Major Expenditure Categories
The latest CPI data also provides a breakdown of inflation across different expenditure groups. Among the categories tracked, personal care, social protection and miscellaneous goods and services recorded the highest inflation rate at 15.17%.
This was followed by restaurants and accommodation services, where prices increased at an annual rate of 8.38%.
The food and beverages category recorded inflation of 5.66%, remaining above the overall CPI inflation rate of 4.82%.
Meanwhile, paan, tobacco and intoxicants registered inflation of 4.71%, broadly in line with the headline retail inflation figure.
Transport and Education Inflation
The transport category recorded an inflation rate of 4.60% in August 2026. Education services followed with inflation of 3.73%.
Prices of clothing and footwear increased by 3.56% during the month, according to the CPI data.
The furnishings, household equipment and routine household maintenance category recorded inflation of 2.68%.
Meanwhile, housing, water, electricity, gas and other fuels registered an inflation rate of 2.61%.
Information, Recreation and Health Inflation
At the lower end of the inflation spectrum, information and communication recorded a price increase of 2.01%.
The recreation, sport and culture category saw inflation of 1.74% in August.
Among all the expenditure divisions listed in the data, health recorded the lowest inflation rate at 1.34%.
Overall, the August CPI data shows that while headline retail inflation remained at 4.82%, food prices and several service-related categories continued to exert pressure on household budgets, with rural inflation remaining higher than urban inflation.