New Delhi, India, 12 August 2026 – India’s annual retail inflation accelerated to 4.45% in July from 4.38% in June as food prices increased, extending a second month above the central bank’s 4% medium-term target without materially changing the near-term interest-rate outlook.
The reading was close to economists’ 4.50% consensus estimate. Its limited surprise helps explain why the data are unlikely, on their own, to prompt a policy shift. The Reserve Bank of India left the repo rate unchanged at 5.25% in its latest meeting while waiting for clearer evidence that price pressures are spreading across the economy.
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