Retail Inflation Rises To 5.54% In September On Costlier Food Items

Last Updated:October 12, 2026, 5:01 PM IST

The inflation figure for September is the highest in the new index series released in January.

Inflation in the food basket rose to 7.74 per cent from 5.97 per cent the previous month.

Retail inflation rose to 5.54 per cent in September, mainly due to costlier food items, according to government data released on Monday.

The Consumer Price Index-based inflation was at 4.83 per cent in August.

The inflation figure for September is the highest in the new index series released in January.

Inflation in the food basket rose to 7.74 per cent from 5.97 per cent the previous month.

Last week, the Reserve Bank hiked the benchmark lending rate (repo) by 25 basis points to 5.50 per cent amid inflationary concerns.

Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group, said, “India’s CPI inflation accelerated to 5.54% in September 2026 from 4.83% in August, broadly validating our earlier view, though marginally above our 5.4% estimate and the Reuters consensus.”

“The 71-bps increase was driven by higher food prices, particularly vegetables, alongside higher energy costs and an unfavourable base effect, with inflation at just 1.54% in September 2025. While the low base amplified the headline print, the sequential pickup in food prices suggests that the rise was not entirely base-driven. Looking ahead, inflation is likely to remain elevated in the near term, with food prices, crude above $100/bbl and rupee depreciation posing upside risks. With the RBI having already raised the repo rate by 25 bps to 5.50% and shifted to a calibrated tightening stance, the inflation trajectory will remain critical. Our view is that risks remain tilted to the upside, limiting the scope for monetary easing until there is clearer evidence of moderation in underlying and sequential price pressures.”

(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)

Quick Answers

Powered by

Ask News18

What was India’s retail inflation rate in September?

India’s retail inflation rose to 5.54 per cent in September, driven mainly by costlier food items. This figure is the highest recorded in the new index series released in January.

How much did the Reserve Bank hike the repo rate?

The Reserve Bank hiked the benchmark lending repo rate by 25 basis points to 5.50 per cent amid growing inflationary concerns.

What are the main factors driving the inflation rise in India?

The acceleration was driven by higher food prices, particularly vegetables, alongside increased energy costs and an unfavorable base effect from the previous year.

Powered by

Ask News18

About the Author

Saurabh VermaDeputy News Editor

Saurabh Verma is a Deputy News Editor at News18.com, specialising in Indian politics and breaking global news. With years of experience tracking election strategies, he decodes domestic issues for mil…Read More

Read More