August retail inflation raises chances of RBI rate hike in October, say economists
India's retail inflation, measured by the Consumer Price Index (CPI), climbed to a 20-month high of 4.8% in August 2026, pushed up mainly by rising food prices. Economists say the sharper reading strengthens the case for the Reserve Bank of India to raise its policy repo rate at its October review, potentially reversing the recent easing bias.
Nabka Insight
CPI touching a 20-month high revives expectations of an RBI rate hike — a core macroeconomics question.
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- August 2026 CPI inflation rose to a 20-month high of 4.8%.
- Rising food prices were the main driver of the increase.
- Economists expect the RBI may hike its policy rate at the October review.
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