Key Highlights:

  • India's retail inflation rose to 4.82% in August, based on the new CPI series
  • Silver jewellery prices jumped 107.11%; gold jewellery rose 35.55%
  • Food inflation climbed to 5.95%, led by onion (+48.27%), ginger (+73.82%) and garlic (+43.6%)
  • Tomato (-31.09%) and potato (-13.14%) prices fell during the month
  • Car prices declined 6.72% year-on-year
  • Inflation remains within the RBI's 2–6% tolerance band; repo rate held steady
  • RBI cut its FY27 inflation forecast to 5% (core inflation to 4.3%) and raised its growth forecast to 6.7%

India's retail inflation rose to 4.82 per cent in August, up from the same month a year earlier, according to Consumer Price Index (CPI) data released by the Ministry of Statistics on Monday.

The increase was led by a sharp jump in precious metals, with silver jewellery prices climbing 107.11 per cent and gold jewellery rising 35.55 per cent over the year.

Vegetables Push Food Inflation Higher

Overall food inflation rose to 5.95 per cent in August. Onion prices increased 48.27 per cent, ginger surged 73.82 per cent, and garlic climbed 43.6 per cent compared to a year earlier.

Not all essentials turned costlier, however. Tomato prices fell 31.09 per cent and potato prices dropped 13.14 per cent during the month, offering some relief to households even as other kitchen staples became more expensive.

Car prices also declined, down 6.72 per cent year-on-year, according to the data.

Inflation Still Within RBI's Comfort Zone

Despite the uptick, August's inflation reading remains within the Reserve Bank of India's tolerance band of 2 to 6 per cent, with 4 per cent as the target midpoint. The central bank's monetary policy seeks to hold inflation within this range while supporting economic growth.

Following the latest monetary policy review, RBI Governor Sanjay Malhotra said headline inflation had moved above target largely because of higher fuel prices, while broader price pressures remained contained. The central bank left the repo rate unchanged to support growth.

RBI Revises Inflation and Growth Forecasts

The RBI has lowered its inflation forecast for the current financial year to 5 per cent, down from the 5.1 per cent projected in June. Core inflation, which excludes food and fuel, is now projected at 4.3 per cent, a steeper cut from the earlier 4.7 per cent estimate.

At the same time, the central bank raised its GDP growth forecast for FY27 to 6.7 per cent from 6.6 per cent, signalling confidence in the economy's resilience despite mixed incoming data.

(Inputs: IANS)

Key Highlights:

  • India's retail inflation rose to 4.82% in August, based on the new CPI series
  • Silver jewellery prices jumped 107.11%; gold jewellery rose 35.55%
  • Food inflation climbed to 5.95%, led by onion (+48.27%), ginger (+73.82%) and garlic (+43.6%)
  • Tomato (-31.09%) and potato (-13.14%) prices fell during the month
  • Car prices declined 6.72% year-on-year
  • Inflation remains within the RBI's 2–6% tolerance band; repo rate held steady
  • RBI cut its FY27 inflation forecast to 5% (core inflation to 4.3%) and raised its growth forecast to 6.7%

India's retail inflation rose to 4.82 per cent in August, up from the same month a year earlier, according to Consumer Price Index (CPI) data released by the Ministry of Statistics on Monday.

The increase was led by a sharp jump in precious metals, with silver jewellery prices climbing 107.11 per cent and gold jewellery rising 35.55 per cent over the year.

Vegetables Push Food Inflation Higher

Overall food inflation rose to 5.95 per cent in August. Onion prices increased 48.27 per cent, ginger surged 73.82 per cent, and garlic climbed 43.6 per cent compared to a year earlier.

Not all essentials turned costlier, however. Tomato prices fell 31.09 per cent and potato prices dropped 13.14 per cent during the month, offering some relief to households even as other kitchen staples became more expensive.

Car prices also declined, down 6.72 per cent year-on-year, according to the data.

Inflation Still Within RBI's Comfort Zone

Despite the uptick, August's inflation reading remains within the Reserve Bank of India's tolerance band of 2 to 6 per cent, with 4 per cent as the target midpoint. The central bank's monetary policy seeks to hold inflation within this range while supporting economic growth.

Following the latest monetary policy review, RBI Governor Sanjay Malhotra said headline inflation had moved above target largely because of higher fuel prices, while broader price pressures remained contained. The central bank left the repo rate unchanged to support growth.

RBI Revises Inflation and Growth Forecasts

The RBI has lowered its inflation forecast for the current financial year to 5 per cent, down from the 5.1 per cent projected in June. Core inflation, which excludes food and fuel, is now projected at 4.3 per cent, a steeper cut from the earlier 4.7 per cent estimate.

At the same time, the central bank raised its GDP growth forecast for FY27 to 6.7 per cent from 6.6 per cent, signalling confidence in the economy's resilience despite mixed incoming data.

(Inputs: IANS)