CPI inflation rises to 4.82% in August 2026: Which everyday items became costlier and which got cheaper?

India’s retail inflation accelerated in August 2026, with consumers facing higher prices for several food items.

The Consumer Price Index (CPI) inflation rose to 4.82% in August 2026, from 4.45% in July 2026, while food inflation increased to 5.95% from 5.52% during the same period, according to data released by the Ministry of Statistics and Programme Implementation.

But the overall inflation number does not tell the full story. Some products saw prices rise sharply, while others became cheaper. Here is what you need to know.

What is CPI inflation?

The Consumer Price Index (CPI) measures changes in the prices of goods and services that households regularly buy. These include food, beverages, clothing, fuel, transport, and other everyday necessities.

For example, if a household basket cost ₹100 in August 2025 and costs ₹105.30 in August 2026, it represents a 5.3% increase in consumer prices over the year.

Which products became the most expensive in August 2026?

At the all-India combined level, silver jewellery recorded the highest inflation at 107.11% in August 2026, although this was lower than 109.89% in July 2026.

Ginger inflation stood at 73.82%, while onion prices rose sharply, with inflation increasing to 48.27% from 22.54% in July.

For example, if ginger currently costs ₹80 per kg, a 73.82% rise in prices means it would have cost around ₹46 per kg in August 2025.

The data shows that while jewellery recorded the sharpest year-on-year price increases, several kitchen staples also became significantly more expensive.

Which products became cheaper in August 2026?

Tomato prices saw the sharpest decline at the all-India combined level. Tomato inflation fell to -31.09% in August, compared with -4.60% in July.

Negative inflation means prices were lower in August 2026 than in August 2025. It does not mean prices necessarily fell from July to August 2026.

If the current price of 1 kg of tomatoes is ₹50, and prices were 31.09% lower in August 2026 compared with a year earlier, the comparable price in August 2025 would have been around ₹72.50 per kg.

Potato prices also remained lower than a year earlier, while prices of motor cars and jeeps, lady’s finger, parwal/patal and kundru also recorded negative inflation.

Which major categories saw the highest and lowest inflation?

According to the All-India combined Consumer Price Index (CPI) data for August 2026, transport services for goods recorded the highest year-on-year inflation at 14.64%. This means the prices of these services were 14.64% higher in August 2026 than in August 2025.

This was followed by food and beverage serving services, which recorded inflation of 8.41%.

On the other hand, purchase of vehicles recorded the lowest inflation at -4.38%, followed by recreational durables at -1.25%.

Overall, the August data shows that inflation pressures were uneven: some everyday food items became substantially costlier, while prices of products such as tomatoes and potatoes remained below year-ago levels.

What an expert says on rising inflation in India?

Shashwat Singh, Fundamental Analyst, Bajaj Broking said, “The inflation trajectory has moved further above the RBI's 4% target through the year, from January's low near 2.7% to August's 4.82%, a run that keeps the central bank's cautious stance in focus, with the RBI projecting CPI inflation for 2026‑27 at 5%.”

The rural–urban gap has also widened, with rural inflation rising to 5.23% in August 2026 from 4.84% in July 2026, while urban inflation increased to 4.31% from 3.96%, keeping the burden higher for rural households, he added.

Wholesale prices are showing a similar trend, with August WPI inflation edging higher amid elevated crude prices and geopolitical tensions. Unless these external pressures ease, headline retail inflation looks likely to stay on this firming trend into the festive season, Singh noted.

Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of financial advice.