Retail inflation rose to a 19-month high of 4.45% in July, driven up by higher food and fuel prices, official data released on Wednesday showed. The expectation ahead is that food inflation will rise further, Madan Sabnavis, chief economist at the Bank of Baroda said. “The war impact on prices can be seen from higher inflation for restaurants and food services where higher fuel prices have made units increase prices,” Mr. Sabnavis explained. “While there is some normalisation in supply of fuel, prices remain where they are and tend to be inelastic in downward direction.” The other segment that saw inflation easing was the ‘recreation, sport and culture’ category to 1.6% in July 2026 from 1.75% a month earlier.