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India’s July Inflation Quickens to 4.45% From 4.38% in June, Stays Above RBI Target
The July reading supports a fourth straight rate hold as policymakers watch food and fuel costs for signs of broader price pressure.
- On Wednesday, the Ministry of Statistics and Programme Implementation reported India's retail inflation rose to a 19-month high of 4.45% in July, driven by higher food and fuel prices.
- Driven by higher food and fuel costs, inflation in restaurants and accommodation services quickened to 7.7% in July, the highest this year, while food and beverages accelerated to 5.2% from 5.05% a month earlier.
- Rajeev Sharan, Head of Research at Brickwork Ratings, noted "fresh spikes in onion and garlic alongside persistently high ginger prices, even as potato and tomato swung into deflation." The health segment cooled to 1.3% in July.
- Governor Sanjay Malhotra warned headline price growth will likely rise further in the near term, peaking in the December quarter. The figures reinforce the Reserve Bank's decision to hold rates at 5.25% for a fourth straight meeting last week.
- Indian officials view the ongoing war in the Middle East as a temporary supply shock affecting energy costs. Inflation remains within the Reserve Bank's 2%-6% target range, cementing expectations that policymakers will keep interest rates unchanged for some time.
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Retail inflation hits 19-month high of 4.45% in July 2026 as food, fuel prices rise
While food, restaurant and accommodation services, and transport became more expensive in July, other services such as healthcare, recreation, sports and culture saw inflation cooling marginally.
·Chennai, India
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Retail inflation rose sharply in July, surpassing the RBI's target. The RBI had estimated retail inflation to remain at 4% over the medium term, but it exceeded that level in July.
Coverage Details
Total News Sources27
Leaning Left2Leaning Right7Center2Last UpdatedBias Distribution64% Right
Bias Distribution
- 64% of the sources lean Right
64% Right
L 18%
C 18%
R 64%
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