India: Inflation rises to 4.82% in August, highest level since December 2024

India: Inflation rises to 4.82% in August, highest level since December 2024
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India’s headline inflation rate increased to 4.82% in August, up from 4.45% in July, marking its highest level since December 2024 amid rising food, energy and transportation costs.

The latest figure was slightly above economists’ expectations of 4.80%, according to Reuters polling, with inflation continuing its upward trend for the tenth consecutive month.

Data from India’s Ministry of Statistics and Programme Implementation showed food inflation rising to 5.95% in August, compared with 5.52% the previous month. Transport-related costs also increased, with freight services rising by more than 14% and personal transportation costs climbing over 7%.

Analysts linked the inflationary pressure to higher energy prices, global supply chain disruptions and India’s dependence on imported fuel. Geopolitical tensions affecting energy supplies have added further uncertainty to domestic prices.

Despite inflation concerns, India’s economy maintained strong momentum, recording 7.8% GDP growth in the quarter ending June. The Reserve Bank of India has kept interest rates unchanged while continuing to monitor inflation risks, particularly from food and energy prices.

The central bank expects overall inflation to remain around 5% during the fiscal year ending March 2027, while financial institutions continue to forecast strong economic growth despite possible challenges from weather conditions, agricultural pressures and reduced public investment.