India's headline inflation rate edged up to 4.45% in July 2026 from 4.38% in June, marking the highest reading since December 2024 and broadly matching market expectations of 4.5%. The increase was driven by renewed price pressure from higher energy costs following the outbreak of war in the Middle East, with weakness in the rupee adding to imported inflation. Even so, consumer price growth remained within the RBI's tolerance range of 2 percentage points around its 4% target. Food and beverages inflation reached 5.52% and transportation rose 4.43%, both affected by the conflict and adverse weather for key crops, while housing and utilities inflation was lower at 2.16% and recreation, sport, and culture stood at 1.6%. On a monthly basis, India's CPI increased 0.88%.