Recently, retail inflation figures have been revealed. Retail inflation has once again crossed 2 percent in the month of August in the month of July. By the way, there is a need to panic about this. Experts believe that core inflation can be 3.2 percent in the current financial year. Which is less than the previous estimate. On the other hand, in the current financial year, RBI can also benefit from the common people as EMI deduction. By the way, there has been a decline in inflation figures for the past several months. But in the month of August, overall inflation figures have increased due to the rise in the prices of food products. Even after that there is nothing to worry about. Let us also tell you who has done this against.
How much will inflation be in FY 2026?
Research and rating firm Chrisil said that during the financial year 2025-26, the core inflation is estimated to be 3.2 percent, which is less than 3.5 percent of its earlier estimate. In its fresh report, Crisil said that this softening shows a decline of 1.4 percent in the Consumer Price Index (CPI) during the current financial year, which is likely to make a scope for monetary relaxation. The report said that RBI can cut interest rates by 2.5 percent this year.
According to Crisil, with the increase in adverse conditions globally, low inflation and reduced interest rates will increase domestic demand in the economy. The report also said that excessive rainfall during the Kharif season is a risk, as it can cause disruption in major horticulture and food producing areas like Punjab. The report said that food inflation has started growing at a lower level, but is still behind the main inflation.
Retail inflation increases
Retail inflation increased to 2.07 percent on monthly basis in August. Inflation has increased mainly due to the increase in vegetables, meat and fish prices. It was 1.61 percent in July last month. This increased inflation has increased after continuous decline in the Consumer Price Index (CPI) for nine months. It was declining since November 2024. However, inflation based on the Consumer Price Index (CPI) has decreased on an annual basis. It was 3.65 percent in August last year. During this period, food inflation fell below zero i.e. 0.69 percent.
Why inflation increased
The National Statistics Office (NSO) stated that the increase in gross inflation and food inflation during August 2025 occurred mainly due to expensive vegetables, meat and fish, eggs, oils and fat, personal care and food products. The government has given the responsibility of keeping the Reserve Bank of India two percent decreased and keeping inflation at four percent. Inflation in rural India increased from 1.18 percent of July to 1.69 percent in August. In urban areas of the country, it was 2.47 percent compared to 2.1 percent on a monthly basis. Among the states, the highest inflation was 9.04 percent in Kerala and the lowest in Assam (-0.66 percent).