July Retail Inflation Rises to 4.45% on Food Prices

Current Context:  On 12 August 2026, the Ministry of Statistics and Programme Implementation (MoSPI) released Consumer Price Index data showing that India’s retail inflation rose to 4.45% in July 2026, compared with 4.38% in June 2026. The increase was mainly driven by higher food prices. Retail inflation remained above the RBI’s 4% medium-term target but within its tolerance band of 2%–6%. 

Key Points

• India’s CPI-based retail inflation stood at 4.45% in July 2026, on a year-on-year basis. 
• Retail inflation was 4.38% in June 2026, showing a moderate increase in July. 
• Food inflation, measured through the Consumer Food Price Index (CFPI), increased to 5.52% in July, from 5.32% in June 2026. 
• Rural retail inflation was higher at 4.84%, while urban inflation stood at 3.96%. 
• Rural food inflation was 5.79%, compared with 5.05% in urban areas.
• The July CPI figures are provisional and use the new 2024=100 base year. 
• Housing inflation stood at 2.22% in July 2026. 
• Higher food prices were the main factor pushing overall inflation upward. Inflation nevertheless remained within the RBI’s prescribed 2%–6% tolerance range. 

Question: 

Q1.What was India’s retail inflation rate in July 2026, according to MoSPI data?
a) 3.96%
b) 4.38%
c) 4.45%
d) 5.52%

Answer: c)  According to data released by MoSPI on 12 August 2026, India’s CPI-based retail inflation increased to 4.45% in July 2026, compared with 4.38% in June.