August retail inflation climbs to 20-month high of 4.8%
Retail inflation measured by the Consumer Price Index (CPI) rose to 4.8% in August 2026, a 20-month high, pushed up mainly by rising food prices. Economists said the pick-up raises the likelihood of the Reserve Bank of India lifting the policy rate at its October review, reversing the easing bias that guided monetary policy through the earlier part of the year.
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CPI is the RBI's headline inflation target and a standard data-based question for UPSC, SSC and Banking exams.
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- August CPI inflation: 4.8%, a 20-month high.
- Main driver: rising food prices.
- Economists expect a possible RBI rate hike at the October 2026 review.
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