Loading…
Data released by the Ministry of Statistics and Programme Implementation on 12 August 2026 showed retail inflation rising to 4.45% in July 2026 from 4.38% in June.
Food inflation measured by the Consumer Food Price Index rose to 5.52% from 5.32%, the main reason for the increase.
Rural inflation, at 4.84%, remained well above urban inflation at 3.96%, because food carries a larger weight in rural spending.
The figures are computed on the revised Consumer Price Index series with base year 2024=100.
Retail inflation has climbed steadily through 2026, from 2.75% in January to 4.45% in July - still within the RBI's 2-6% tolerance band around the 4% target.
| Indicator | June 2026 | July 2026 |
|---|---|---|
| Headline CPI inflation | 4.38% | 4.45% |
| Food inflation (CFPI) | 5.32% | 5.52% |
| Rural inflation | 4.74% | 4.84% |
| Urban inflation | 3.93% | 3.96% |
| Rural food inflation | 5.45% | 5.79% |
| Urban food inflation | 5.09% | 5.05% |
Compiles and releases the Consumer Price Index and the Consumer Food Price Index through the National Statistical Office (NSO); CPI data is normally released around the 12th of the following month
Six-member committee that sets the policy repo rate to meet the inflation target. CPI (Combined) is the target measure. The Government, in consultation with the RBI, retained the 4% target with a 2-6% tolerance band for 1 April 2026 to 31 March 2031, notified in March 2026 under Section 45ZA of the RBI Act, 1934
Compiles the Wholesale Price Index, the other main inflation measure, which unlike CPI excludes services and is not the RBI's target variable
General & Financial Awareness > Monetary Policy, Inflation and Price Indices
GS Paper III > Indian Economy - Growth, Development and Employment; Monetary Policy
General Awareness > Economy and Current Affairs
General Awareness > Current Events
Indian Government Bond Yields are influenced by which of the following? 1. Actions of the United States Federal Reserve 2. Actions of the Reserve Bank of India 3. Inflation and short-term interest rates Select the correct answer using the code given below.
Answer: 1, 2 and 3
With reference to the Indian economy, consider the following statements: 1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities. 2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market. 3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars. Which of the statements given above are correct?
Answer: 2 and 3 only
The index of retail prices paid by households, compiled by the NSO under MoSPI. CPI (Combined) is the RBI's target measure of inflation.
The food sub-index of the CPI, released separately because food prices are volatile and drive most short-term swings in headline inflation.
Updating the reference year of an index - here from 2012=100 to 2024=100 - so that the basket of goods and their weights reflect current consumption patterns.
The 2% margin on either side of the 4% inflation target within which the RBI is not required to explain a miss to the Government.