India’s Retail Inflation Rises To 5.54% In September As Food Inflation Surges To 7.74%

India’s retail inflation climbed to 5.54 per cent in September 2026 from 4.83 per cent in August, as a sharp rise in food prices increased pressure on household budgets. According to data released by the Ministry of Statistics and Programme Implementation on Monday, food inflation accelerated to 7.74 per cent, compared with 5.97 per cent in the previous month.

The Consumer Price Index (CPI)-based inflation rate rose by 71 basis points from August, bringing inflation closer to the Reserve Bank of India’s upper tolerance limit of 6 per cent. The increase was driven largely by higher prices of essential food items, particularly vegetables and other kitchen staples. The figures are based on the revised CPI series with 2024 as the base year.

The pressure was more pronounced in rural areas, where retail inflation increased to 6.08 per cent in September from 5.24 per cent in August. Urban inflation rose to 4.88 per cent from 4.31 per cent. Rural food inflation reached 8.06 per cent, compared with 7.18 per cent in urban areas, highlighting the greater impact of rising food costs outside cities.

Onions recorded the sharpest price pressure among the key items tracked, with inflation surging to 108.09 per cent in September from 48.78 per cent in August. Ginger prices rose 62.85 per cent year-on-year, while garlic inflation accelerated to 54.62 per cent. Lemon prices also saw inflation climb to 36.41 per cent.

However, not all food items became more expensive. Potato prices declined 11.50 per cent year-on-year, while tomato prices fell 8.62 per cent, offering some relief to consumers.

The latest figures come after the Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50 per cent amid inflation concerns. The September reading adds to the challenge of containing price pressures while supporting economic activity. Persistently elevated food inflation could continue to affect household spending and influence the central bank’s future policy decisions.