India's August retail inflation at 4.82% on-year
BusinessLine 1 hr ago·14 Sept 2026, 11:07 am
India's retail inflation eased slightly in August to 4.82% year-on-year, but the figure remains above the Reserve Bank of India's (RBI) 4% target. The drop from July's 5.08% was driven by a slowdown in price growth for fuel and manufactured goods. However, the food price index, which is a major concern for consumers, climbed to 5.95% in August from 5.52% in July, driven by higher prices for vegetables and fruits.
This mixed data creates a challenging environment for the central bank. While the core inflation trend is moderating, the persistent rise in food prices keeps the overall inflationary pressure alive. For investors, this complicates the outlook for interest rates. The RBI has signaled a cautious approach, and this data suggests they may hold rates steady for now rather than cutting them immediately. Investors should watch for the central bank's upcoming policy review to gauge their next move.
Excerpt from BusinessLine
India's annual retail inflation jumped to 4.82 per cent in August from 4.45 per cent in July, driven by higher food and fuel prices and strengthening a case for an interest rate hike in October. The August print is marginally higher than a 4.80 per cent inflation that the economists were expecting in a Reuters…Read the original at BusinessLine
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