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Retail inflation has also increased in August due to increase in prices of many vegetables including potatoes and onions. This is the eighth consecutive month when retail inflation has increased.
Retail inflation increased to 4.82% in August. In July it was 4.45%.
The government has released retail inflation figures on September 14. According to this, the retail inflation rate of food items was 5.95%.
The Reserve Bank has set the target of retail inflation rate at 4%. This is the third consecutive month when retail inflation has been recorded above the RBI’s prescribed comfort zone of 4%.
Potatoes and onions became expensive, silver jewelry became cheaper
| stuff | inflation rate in july | Inflation rate in August | Change compared to July |
| Potato | -16.56% | -13.14% | +3.42% |
| Tomato | -4.59% | -31.09% | -26.50% |
| ladyfinger | -5.52% | -5.41% | +0.11% |
| Ginger | +35.36% | +73.82% | +38.46% |
| Onion | +22.54% | +48.27% | +25.73% |
| gold/diamond/platinum jewelry | +32.98% | +35.53% | +2.55% |
| silver jewelry | +109.84% | +107.11% | -2.78% |
Understand the effect of inflation with the example of onion…
Suppose your household requires 10 kg of onion every month. In normal days its rate was Rs 10 per kg. That means monthly budget of Rs 100.
In the month of July (+22.54%):
The cost of 10 kg onion was approximately ₹123.
Effect: ₹22.54 had little impact.
In the month of August (+48.27%):
To buy 10 kg onion you had to pay approximately ₹ 148.
Difference compared to July:
You had to pay ₹25 more in July than in July.
How does inflation increase and decrease?
The rise and fall of inflation depends on the demand and supply of the product. If people have more money they will buy more things. This will increase the demand for things and if there is no supply, their prices will increase. Whereas if demand is less and supply is more then inflation will be less.
What does 4.82% inflation rate mean?
1. Comparison with previous year (year-on-year)
When we say that inflation in July 2026 is 4.82%, it means that we are comparing it with August 2025. That’s a whole year’s worth of change. 4.82% is an average number called the ‘Consumer Price Index’. This includes hundreds of things in your life:
- The price of something may have increased a lot.
- The prices of some things may also have decreased.
- When all this was added together, average spending increased by 4.82%.
2. An item of ₹ 100 is now worth ₹ 104.82
Its mathematics is very simple. If you bought an item like ration for ₹ 100 in August 2025, then the same item will cost ₹ 104.82 in August 2026.
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Also read this business related news…
Wholesale inflation rose to 9.92% in August: highest in 8 months; Effect of food items and fuel becoming expensive
Wholesale inflation increased to 9.92% in August. In July it was 9.78%. This increase was recorded due to cost of food items, fuel, power and manufactured products. The government released these figures today, September 14. Read the full news…
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