Retail inflation climbed to a 19-month peak of 4.45 percent in July, pushed higher by increased food and fuel costs, according to official figures released on Wednesday.
Data from the Consumer Price Index issued by the Ministry of Statistics and Programme Implementation indicated that food, restaurant and accommodation services, and transport grew more expensive during July, whereas inflation in areas such as healthcare, recreation, sports and culture eased slightly.
The CPI series received an update earlier this year with a revised base year of 2024. Consequently, while overall index figures extend back to August 2021, detailed sector data begins only from January 2026.
Food and beverages inflation accelerated to 5.2 percent in July 2026 from 5.05 percent the prior month. Analysts attributed this to renewed increases in onion and garlic prices along with sustained high costs for ginger, even as potato and tomato prices turned negative.
Economists anticipate further rises in food inflation ahead, citing substantial monsoon recovery in July alongside reports of crop losses from heavy rains. This situation, together with extended growing seasons, is expected to elevate pulse prices, while elevated global edible oil costs continue to affect local markets.
Restaurants and accommodation services saw inflation rise to 7.7 percent in July 2026, the highest level this year, up from 6.9 percent in June. Transport inflation also increased to 4.4 percent from 4.3 percent.
In contrast, health sector inflation declined to 1.3 percent from 1.4 percent, continuing a downward trend since February. The recreation, sport and culture category eased to 1.6 percent from 1.75 percent. Personal care and related services inflation stayed at 14.8 percent, marking the lowest reading for the year so far.
