Page 25 - Policy Economic Report - September 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

Housing-related inflation remained comparatively moderate in August 2026. The Housing, Water,
Electricity, Gas and Other Fuels division recorded inflation of 2.61%, with rural and urban inflation at
3.27% and 2.22%, respectively. Within the division, electricity, gas and other fuels recorded inflation
of 3.09%, while actual rental payments for housing increased by 2.27%. Maintenance, repair and security
of dwellings recorded somewhat higher inflation of 3.77%. Overall, housing costs remained below the
headline CPI rate, suggesting that the housing component was not a major driver of the increase in overall
retail inflation during the month.

Figure 9: Inflation Rates Across Major CPI Groups (August 2026)

Source: Ministry of Statistics and Programme Implementation - National Statistics Office

The transport and household-cost components also showed differentiated price movements. Operation
of personal transport equipment recorded inflation of 7.40%, while transport services for goods
registered a relatively high 14.64%. In contrast, the CPI for purchase of vehicles declined by 4.38%. Within
housing-related components, inflation in electricity, gas and other fuels stood at 3.09%, while actual
rental payments for housing increased by 2.27%.

Regional inflation also remained varied. Among states with populations above 50 lakhs, Telangana
recorded the highest headline inflation at 6.27%, followed by Tamil Nadu at 5.92%, Madhya Pradesh at
5.55%, Andhra Pradesh at 5.53% and Odisha at 5.52%. For food inflation, Maharashtra recorded the

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