Retail Inflation Hits 8-Month High Of 4.82% In August As Food Prices Surge

India's retail inflation climbed to an eight-month high of 4.82% in August, up from 4.45% in July, as elevated food prices continued to pressure household budgets. The Consumer Price Index-based inflation has now remained above the Reserve Bank of India's medium-term target of 4% for three consecutive months.

Food inflation emerged as the key driver, with the Consumer Food Price Index rising to 5.95% from 5.52% in July. Onion prices more than doubled to 48.27% year-on-year, while garlic inflation reached 43.60% and ginger prices rose 73.82%. Rural inflation increased to 5.23% from 4.84%, while urban inflation rose to 4.31% from 3.96%.

The August data will be closely monitored ahead of the RBI's Monetary Policy Committee meeting in October. The central bank had previously kept the repo rate unchanged at 5.25% with a neutral stance.