IBNS-CMEDIA: India’s retail inflation rose to 5.54 percent in September 2026, according to government data released on Monday, driven by a sharp increase in food prices.
The year-on-year inflation rate based on the All India Consumer Food Price Index (CFPI) stood at 7.74 per cent in September, on a provisional basis, compared with the corresponding month last year. Food inflation was higher in rural areas, at 8.06 per cent, than in urban areas, where it stood at 7.18 per cent.
Onion, ginger, garlic and lemon were among the food items that recorded some of the steepest price increases during the month.
Onion prices witnessed a sharp acceleration in inflation, which surged to 108.09 per cent in September from 48.78 per cent in August.
Garlic inflation also increased, rising to 54.62 per cent from 43.60 per cent in the previous month. Lemon prices recorded an inflation rate of 36.41 per cent, up from 15.15 per cent in August.
According to the Ministry of Statistics and Programme Implementation (MoSPI), real-time price data are collected weekly by field staff of the National Statistical Office’s (NSO) Field Operations Division. The survey covers 1,407 selected urban markets, including online markets, and 1,465 villages across states and Union territories.
The response rate for September 2026 stood at 100 per cent in both rural and urban markets.
The inflation data come amid concerns over rising prices, elevated oil costs and pressure on the Indian rupee. The Reserve Bank of India (RBI) has raised its benchmark repo rate by 25 basis points to 5.50 per cent from 5.25 per cent, following a unanimous decision by its Monetary Policy Committee (MPC).
The rate hike marks the first increase since February 2023 and reflects the central bank’s concerns over inflationary pressures and broader economic risks.
