India's Retail Inflation Rises to 4.45% in July on Higher Food Prices

India's retail inflation rose to 4.45 per cent in July 2026, from 4.38 per cent in June, mainly due to higher food prices, according to data released by the National Statistics Office (NSO) on Wednesday.

Food inflation, measured by the Consumer Food Price Index, increased to 5.52 per cent in July from 5.32 per cent in June. Rural food inflation was higher at 5.79 per cent, while urban food inflation stood at 5.05 per cent.

Overall inflation also showed a rural-urban gap, with rural inflation at 4.84 per cent and urban inflation at 3.96 per cent. Housing inflation was 2.22 per cent during the month.

Among key items, prices of ginger rose 83.62 per cent, garlic 35.36 per cent and onions 22.54 per cent year-on-year. At the other end, potato prices fell 16.56 per cent, while tomato prices declined 4.59 per cent.

The July figures are based on the new CPI series with 2024 as the base year. Price data were collected from 1,407 urban markets, including online markets, and 1,465 villages, with a 100 per cent response rate during the month.

The July reading marks the second consecutive month above the Reserve Bank of India's 4 per cent inflation target, though it remains within the central bank's 2-6 per cent tolerance band. The RBI recently kept its policy rate unchanged, with economists saying the latest data are unlikely to immediately alter its policy outlook.

However, erratic monsoon conditions, higher global food and oil prices, input-cost pressures and fading favourable base effects could keep inflation elevated in the coming months. Some economists expect headline inflation to cross 5 per cent by September.

The NSO will release August 2026 CPI data on September 14.