India Inflation Rises to 4.45% in July Amid Food Price Surge

India’s retail inflation, measured by the All India Consumer Price Index (CPI), reached 4.45% (Provisional) in July 2026. This marks the sixth consecutive month of increasing inflation, primarily driven by persistently high food prices.

The latest CPI reading remains above the Reserve Bank of India’s (RBI) medium-term inflation target of 4%. The RBI is mandated to maintain headline retail inflation within a tolerance band of 2% to 6% for the five-year period from April 1, 2026, to March 31, 2031.

Key Inflation Figures for July 2026

• All India Combined CPI: 4.45% (Provisional) in July 2026, up from 4.38% (Final) in June 2026.
• Rural CPI: 4.84% in July 2026, increasing from 4.74% in June 2026.
• Urban CPI: 3.96% in July 2026, rising from 3.93% in June 2026.
• Combined CPI Index Value: 107.94 in July 2026.

Food inflation, specifically tracked by the Consumer Food Price Index (CFPI), saw a significant increase in July 2026. This surge underscores the impact of agricultural produce on overall consumer costs.

Food Prices Fuel Overall Surge

• All India Combined CFPI: 5.52% (Provisional) in July 2026, compared to 5.32% (Final) in June 2026.
• Rural CFPI: 5.79% in July 2026, up from 5.45% in June 2026.
• Urban CFPI: 5.05% in July 2026, slightly down from 5.09% in June 2026.
• Combined CFPI Index Value: 109.39 in July 2026.

Beyond food, other categories also contributed to the inflationary pressure, with housing inflation standing at 2.22% (Provisional) for July 2026. This indicates a broad-based inflationary environment across various consumer segments.

Specific Commodities Driving Price Changes

Several key items experienced notable inflation rates at the All India combined level during July 2026, highlighting specific pressures within the consumer basket.

• Silver Jewellery: 109.84% in July 2026, compared to 133.24% in June 2026.
• Ginger: 83.62% in July 2026, significantly up from 50.41% in June 2026.
• Garlic: 35.36% in July 2026, rising from 17.93% in June 2026.
• Gold/Diamond/Platinum Jewellery: 32.98% in July 2026, against 36.81% in June 2026.
• Onion: 22.54% in July 2026, a sharp increase from 4.73% in June 2026.

Conversely, some items saw deflation or low inflation rates in July 2026, offering some relief in specific expenditure areas for consumers.

• Potato: (-)16.56% in July 2026, compared to (-)20.34% in June 2026.
• Motor car and jeep: (-)6.72% in July 2026, against (-)6.89% in June 2026.
• Lady’s finger: (-)5.52% in July 2026, a decrease from 5.54% in June 2026.
• Peas: (-)5.27% in July 2026, an improvement from (-)9.67% in June 2026.
• Tomato: (-)4.59% in July 2026, a significant shift from 31.92% in June 2026.

Broader Sectoral Inflation Trends

Inflationary pressures were also observed across various other sectors, contributing to the overall upward trend in consumer prices during July 2026.

• Food and beverages: Increased to 5.24% in July 2026 from 5.05% in June 2026.
• Transport: Rose to 4.43% in July 2026 from 4.31% in June 2026.
• Restaurants and accommodation services: Surged to 7.72% in July 2026 from 6.91% in June 2026.
• Clothing and footwear: Increased to 3.38% in July 2026 from 3.23% in June 2026.
• Housing, water, electricity, gas and other fuels: Inched up to 2.16% in July 2026 from 1.99% in June 2026.

The consistent rise in retail inflation, particularly above the RBI’s target, signals ongoing challenges in managing price stability across the Indian economy.