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India’s August CPI Inflation Hits 8-Month High of 4.8% as Food and Services Costs Rise
Author
Shoonya Team
India’s retail inflation rose to an eight-month high of 4.8% in August, extending its steady climb through 2026 as food prices hardened and cost pressures in several services remained elevated. Headline inflation has now risen for seven consecutive months, from 2.7% in January.
How CPI Has Moved Through 2026
| Month | CPI Inflation |
|---|---|
| January | 2.7% |
| February | 3.2% |
| March | 3.4% |
| April | 3.5% |
| May | 3.9% |
| June | 4.4% |
| July | 4.5% |
| August | 4.8% |
What Pushed Food Inflation to 5.95% in August
Food inflation accelerated to 5.95% in August from 5.52% in July, with sharp price increases in onions and garlic adding to household costs.
| Item | July 2026 | August 2026 |
|---|---|---|
| Ginger | 73.82% | 89.57% |
| Onion | 22.54% | 48.27% |
| Garlic | 35.36% | 49.6% |
Inflation in food and beverage serving services also rose to 8.41%, suggesting higher input costs are increasingly showing up in prices consumers pay for eating out.
Which Services Became More Expensive in August
Price pressures extended beyond food into several service categories. Transport services for goods nearly doubled in inflation terms, while passenger transport and recreational services also moved higher.
| Service Category | July 2026 | August 2026 |
|---|---|---|
| Transport services for goods | 7.8% | 14.6% |
| Passenger transport services | 2.9% | 3.4% |
| Recreational services | 2.4% | 3.0% |
| Outpatient care services | 1.6% | 1.8% |
| Secondary education | 4.3% | 4.3% |
| Services for processing primary goods for food | 3.5% | 3.5% |
Gold and Silver Jewellery Kept Inflation Elevated
Precious metals continued to contribute to the headline number. Gold jewellery inflation stood at 107.11% in August, easing slightly from 109.89% in July. Silver jewellery inflation rose to 35.53% from 32.98% in the previous month.
Which States Recorded the Highest Inflation in August
Southern states continued to lead the state-wise inflation chart. Telangana recorded the highest reading at 6.3%, followed by Tamil Nadu at 5.9%, Madhya Pradesh at 5.6%, Andhra Pradesh at 5.5%, and Odisha at 5.5%.
NCT of Delhi recorded the lowest reading among major states at 2.6%, followed by Jharkhand at 3.1% and West Bengal at 3.3%.
End Note
The next CPI print for September 2026, scheduled for release on October 13, will show whether the upward trend continues or moderates as the kharif harvest season progresses.
Source: Moneycontrol
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