India’s headline retail inflation is expected to accelerate to 4.88% in August 2026, up from 4.44% in July, marking the second consecutive monthly increase and the highest reading in the current 2023–24 CPI series, according to a Union Bank of India report. Persistent food-price pressures and rising fuel inflation are expected to drive the increase.
Food inflation is projected to rise to 6.03% in August from 5.24% in July, despite a sharp moderation expected in vegetable inflation to 0.39% year-on-year. The decline in vegetable inflation is likely to be offset by higher prices across other essential food categories, including cereals, edible oils and sugar.
Sugar inflation is projected to surge 11.53% month-on-month in August, its highest level on record, following an estimated 15% increase in sugar prices during the month. Cereal inflation is expected to rise to 2.2%, while pulses inflation is projected at 2.7%, reflecting tighter domestic supplies and continued pricing pressure.
For the dairy sector, the report expects milk inflation to strengthen over the next few months, following recent upward revisions in retail milk prices across several States. The broader rise in food and input costs could influence consumer spending, dairy pricing and margins across the food supply chain.
Source: Dairynews7x7 07 Sep, 2026 Read full story here
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