Archive · 12 Aug 2026
India's July retail inflation rises to 4.45%, above RBI target
Inflation is when the prices of things we buy go up.
In July, prices in India went up a little faster than they did in June.
The inflation rate was 4.45 percent.
The Reserve Bank of India, which is like the country's money coach, wants prices to rise by about 4 percent each year.
Prices have stayed above that goal for two months in a row.
Food prices, like ginger, garlic, and onions, went up the most.
Prices rose more in villages than in cities.
Renting a home also got slightly more expensive.
An economist who studies prices thinks inflation will stay high because of food, but it probably will not get out of control.
So the central bank may wait before changing its policy.
India's retail inflation rose to 4.45% in July, up from 4.38% in June.
Inflation has remained above the Reserve Bank of India's 4% target for two consecutive months.
Food inflation, measured by the Consumer Food Price Index, rose to 5.52% in July, driven by ginger, garlic, and onion prices.
Rural retail inflation stood at 4.84%, higher than the urban rate of 3.96%.
Economist Vikram Chhabra expects inflation to edge up on food prices but remain below the RBI's 6% upper tolerance band, keeping the RBI on an extended policy pause.
- Who
- The Reserve Bank of India, Indian households, and economist Vikram Chhabra of 360 ONE Asset.
- What
- India's retail inflation rose to 4.45% in July, driven mainly by rising food prices.
- When
- For the month of July, following June's reading of 4.38%.
- Where
- India, covering both rural and urban areas.
- Why
- Because food prices, including ginger, garlic, and onion, increased.
- July retail inflation
- 4.45%
- June retail inflation
- 4.38%
- Food inflation (CFPI)
- 5.52%
- Rural retail inflation
- 4.84%
- Urban retail inflation
- 3.96%
- Housing inflation
- 2.20%
- RBI inflation target
- 4%
- Months above target
- 2 consecutive months