All India Consumer Price Index (CPI) with base year 2024 for the month of July, 2026 over July, 2025 is 4.45% (provisional). This lies below the PHDCCI forecast of 5.35% for the month of July 2026, computed as on March 2026.
The CPI Inflation Year - on- Year (Y-o-Y) has been steadily rising for the past 6 months (base year 2024), starting from 2.74% in January to 4.38% in June 2026, with a CAGR of 9.88%. This rise in CPI Inflation is attributable to rising food and fuel prices.
Specifically, for the month of July 2026, the CPI inflation is primarily driven by rising food prices as the Consumer Food Price Inflation reached 5.52% (Y-o-Y provisional). Ginger and Garlic are the main drivers of food inflation with inflation rates of 83.62% and 35.36% in July, 2026, respectively. Similarly, Onions saw an inflation of 22.54%.
“Despite unideal weather conditions, farmers have remained determined, ensuring that demand for food is met. Additionally, above adequate inventories of staples including rice and wheat have supported domestic availability of food”, says Mr. Rajeev Juneja, President, PHDCCI
Intensifying El Nino conditions, with Southwest rainfall being predicted at below 94% of the Long Period Average, has caused the food supply chain to weaken. The prolonged West-Asia crisis continues to bring volatility in Crude Oil prices, driving fuel and LPG costs to increase. This has driven the inflation rate of Transport to be 4.43% and of Restaurants and Accommodation Services to be 7.72% in July, 2026.
Furthermore, difficulties in accessing international markets, due to geopolitical uncertainties, have constrained the supply of precious metals. This has led the prices of jewellery items to skyrocket, with silver jewellery inflation at 109.84% and Gold/Diamond/Platinum Jewellery inflation at 32.98%, in July, 2026 (Y-o-Y provisional).
“The CPI inflation remains within the RBI tolerance band of 4 ± 2%. India’s domestic demand continues to be buoyant, exports remain robust and industrial production continues to grow steadily. Coupled with RBI’s prudent monetary measures, India’s economy shows resilience, says”, Dr. Ranjeet Mehta, SG & CEO, PHDCCI.
