New Delhi: Retail inflation in India increased to 2.07 per cent in August, up from 1.61 per cent in July, according to government figures released on Friday. The latest data from the National Statistics Office (NSO) shows the uptick was mainly driven by higher prices of vegetables, meat, fish, eggs, and other kitchen staples.
This marks the first rise after nine consecutive months of decline in the consumer price index (CPI), which had been falling since November 2024. In comparison, inflation stood at 3.65 per cent in August last year.
Food prices remained under pressure, with annual food inflation at (-)0.69 per cent in August 2025. “An increase in headline inflation and food inflation during the month of August 2025 is mainly attributed to an increase in inflation of vegetables, meat and fish, oil and fats, personal care and eggs,” the NSO noted in its release.
Rural and urban inflation both saw sequential rises. Inflation in rural areas moved up to 1.69 per cent in August from 1.18 per cent the previous month, while in urban regions it climbed to 2.47 per cent from 2.1 per cent.
State-wise, Kerala recorded the highest inflation at 9.04 per cent, while Assam registered the lowest at (-)0.66 per cent.
Among key categories, housing inflation stood at 3.09 per cent in August, slightly lower than 3.17 per cent in July. Inflation in education dropped to 3.6 per cent from 4.11 per cent, while the health segment also recorded a sequential easing. The Reserve Bank of India, which uses retail inflation as a primary benchmark in formulating its bi-monthly monetary policy, has been tasked by the government to maintain inflation at 4 per cent, with a tolerance band of 2 per cent on either side. The NSO said it gathers price data from 1,181 villages and 1,114 urban markets across all states and Union Territories.