Fixed deposit (FD) investors are on the lookout for high interest rates after experiencing the lowest-rate cycle following the coronavirus pandemic. The possibility of interest rates going up is linked to high inflation, which is one of the trigger points for banks to raise deposit rates.
India’s retail inflation, as measured by the consumer price index, for July 2026 hasn’t been released yet, but recent data shows that inflation is climbing. In June 2026, it hit 4.38%, up from 2.74% in January. At 4.38%, the June inflation rate was already above the Reserve Bank of India’s (RBI) target of 4%. it’s edging closer towards the upper tolerance band of 6%.
