Tamil Nadu recorded retail inflation of 5.92% in August 2026, placing it second among states with populations above 50 lakh, according to provisional Consumer Price Index (CPI) data released by the Ministry of Statistics and Programme Implementation (MoSPI), as reported in FirstPost.
The inflation rate in Tamil Nadu was higher than the national retail inflation of 4.82% recorded in August. Telangana recorded the highest inflation among the major states at 6.27%, followed by Tamil Nadu at 5.92%.
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Madhya Pradesh recorded inflation of 5.55%, while Andhra Pradesh and Odisha reported rates of 5.53% and 5.52%, respectively.
The national retail inflation rate rose to 4.82% in August from 4.45% in July and 4.38% in June. The latest reading marked the eighth consecutive month of increase in headline inflation, after it had risen from 2.74% in January to 4.82% in August.
Food prices were among the key drivers of the increase nationally. Consumer Food Price Index (CFPI)-based inflation rose to 5.95% in August from 5.52% in July. Rural food inflation stood at 6.13%, while urban food inflation was recorded at 5.64%.
The latest CPI data showed that price pressures remained particularly pronounced in several food items. Ginger recorded inflation of 73.82% in August, while onion and garlic prices rose 48.27% and 43.60%, respectively, on a year-on-year basis.
At the same time, tomato prices declined 31.09% and potato prices fell 13.14% during the month. Motor cars and jeeps also recorded negative inflation of 6.72%.
The data also showed significant price increases in some other categories. Silver jewellery recorded inflation of 107.11%, while gold, diamond and platinum jewellery recorded inflation of 35.53%.
Services also recorded varying degrees of price pressure nationally. Personal care, social protection and miscellaneous goods and services recorded the highest inflation among divisions at 15.17% in August. Restaurants and accommodation services recorded inflation of 8.38%, while food and beverages registered 5.66%. Transport inflation stood at 4.60%.
The August figures were based on the new CPI series introduced with 2024 as the base year. Nationally, rural inflation was higher at 5.23%, compared with 4.31% in urban areas.
The MoSPI said price data for August had been collected from 1,407 urban markets, including online markets, and 1,465 villages, with a 100% response rate from both rural and urban markets.
The high inflation reading in Tamil Nadu comes amid questions over the state’s broader revenue and economic performance. Tamil Nadu’s Goods and Services Tax (GST) tax revenue reportedly declined by 1% in August, adding another point of concern alongside the state’s relatively high retail inflation.
With Tamil Nadu recording the second-highest retail inflation among the major states, the August data has put the spotlight on rising prices in the state even as the national inflation rate remained below 5%.
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