Wholesale and retail inflation rise in August ahead of festive season
Retail inflation climbed to 4.82 percent and wholesale inflation to 9.92 percent in August, driven by costlier food, fuel and power.
Inflation has begun to bite even as Ganeshotsav celebrations are on. The latest wholesale and retail inflation figures have raised concerns about household budgets in the days ahead, with people set to pay more for almost everything.
According to data released by the Ministry of Commerce and Industry on Monday, retail inflation rose to 4.82 percent in August on the back of higher food prices. Wholesale inflation rose to 9.92 percent year-on-year in August 2026, up from 9.78 percent in July. Consumer Price Index-based inflation had stood at 4.45 percent in July. According to the National Statistical Office, the all-commodities Wholesale Price Index stood at 110.8 in August, up from 110.0 in July. These figures are based on the new WPI series, which uses 2022-23 as its base year.
Among the three main groups, inflation in cereals and food articles rose to 5.95 percent in August from 5.52 percent in July. The Reserve Bank of India has projected retail inflation for the 2026-27 financial year at 5 percent, with an estimate of 4.7 percent in the second quarter, 5.9 percent in the third quarter and 5.5 percent in the fourth quarter.
Fuel and power inflation rose sharply from 20.05 percent to 22.93 percent. Inflation in manufactured goods rose marginally, from 8.29 percent to 8.37 percent.
The pressure of inflation appears to be rising again, from the kitchen to the household budget. The government data has added to public concern. The country's retail inflation (CPI) for July rose to 4.45 percent, up from 4.38 percent in June. This figure is slightly below economists' estimate of 4.50 percent, but it remains consistently above the Reserve Bank of India's target of 4 percent.
