New Delhi: Price pressures in the economy strengthened slightly in July, with food costs rising faster even as several vegetables and vehicle prices recorded year-on-year declines.
India’s year-on-year retail inflation based on the Consumer Price Index (CPI) rose to 4.45% in July 2026 from 4.38% in June, according to provisional data released by the Ministry of Statistics and Programme Implementation on August 12. The latest figures are based on the CPI series with 2024 as the base year.
Inflation was higher in rural areas than in cities. Rural CPI inflation stood at 4.84% in July, compared with 4.74% in June, while urban inflation increased marginally to 3.96% from 3.93% during the same period.
Food inflation also moved higher during the month. The Consumer Food Price Index (CFPI) recorded year-on-year inflation of 5.52% in July, against 5.32% in June. Rural food inflation stood at 5.79%, while urban food inflation was recorded at 5.05%.
The overall CPI index increased to 107.94 in July from 107.00 in June. The rural CPI index stood at 108.34, while the urban index was at 107.45. The combined CFPI index rose to 109.39 from 107.15 in June.
Housing inflation stood at 2.22% in July. Rural housing inflation was recorded at 2.80%, while urban housing inflation stood at 2.01%, according to the official data.
Among major consumption divisions, food and beverages recorded combined inflation of 5.24%, while transport inflation stood at 4.43%. Clothing and footwear inflation was 3.38%, education services recorded 3.64%, and health inflation stood at 1.34%.
Prices in restaurants and accommodation services remained elevated, with the category recording combined inflation of 7.72%. Personal care, social protection and miscellaneous goods and services showed inflation of 14.77%, the highest among the broad consumption divisions listed in the July CPI release.
The data also showed sharp differences across individual commodities.
Potato prices were 16.56% lower than a year earlier in July, while motor car and jeep prices declined 6.72%. Lady’s finger recorded inflation of -5.52%, peas -5.27% and tomato -4.59%. Tomato prices had recorded inflation of 31.92% in June before moving into negative territory in July.
At the other end of the spectrum, silver jewellery recorded year-on-year inflation of 109.84% in July. Ginger prices increased 83.62%, garlic 35.36%, gold, diamond and platinum jewellery 32.98%, while onion inflation stood at 22.54%.
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