EconomyInflationRBI

Retail inflation hits 20-month high of 4.82% in August

India's retail inflation, measured by the Consumer Price Index, rose to 4.82% in August 2026, a 20-month high, driven by higher food and fuel prices. The reading breached the RBI's 4% midpoint target for the third successive month, though it remains within the central bank's 2-6% tolerance band, keeping pressure on monetary-policy decisions.

Nabka Insight

CPI breaching the RBI midpoint for a third month shapes the interest-rate outlook.

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Key facts

  • CPI retail inflation at 4.82% in August 2026
  • A 20-month high, driven by food and fuel prices
  • Breached RBI's 4% midpoint target for the third straight month

Background

Relevant forBanking · SSC · UPSC

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