India's retail inflation edged up to 4.45 per cent in July 2026 from 4.38 per cent in June, marking the second consecutive month above the Reserve Bank of India's medium-term target of 4 per cent. The marginal increase came despite a favourable base effect, as inflation pressures from food and essential commodities continued to weigh on consumer budgets across the country. Food inflation remained elevated at around 5.52 per cent year-on-year in July, with essential commodities including onions, edible oils, rice, and pulses driving the broad-based increase. Rural inflation continued to outpace urban price pressures, reflecting the disproportionate impact of food costs on countryside households. The persistent inflation above the RBI's 4 per cent target has raised expectations amongst analysts about the central bank's policy stance in upcoming meetings.