India's retail inflation edged up to 4.45% in July 2026, remaining within the central bank's 2%-6% tolerance band for the second straight month while staying above the RBI's medium-term target of 4%. The Consumer Price Index (CPI) reading supports expectations that policymakers will keep interest rates unchanged for the time being.
Provisional data from the All India Consumer Food Price Index showed food inflation at 5.52% year-on-year. Rural food inflation was higher at 5.79%, while urban areas recorded 5.05%.
The modest rise in prices compared with the previous month does not alter the broader picture of price stability. The Reserve Bank of India's rate-setting panel is likely to maintain its current pause, focusing on supporting economic growth while inflation stays within its mandated band. The steady numbers give the central bank room to hold rates without immediate pressure to act.