India’s retail inflation rises to 5.54% in September, food inflation surges to 7.74%


CPI inflation climbs from 4.83 per cent in August as onion prices more than double; rural inflation outpaces urban levels

India’s retail inflation rose to 5.54 per cent in September 2026, up from 4.83 per cent in August, as food inflation accelerated sharply, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

Inflation based on the Consumer Price Index (CPI) increased by 71 basis points month-on-month, while food inflation, measured by the Consumer Food Price Index (CFPI), climbed to 7.74 per cent in September from 5.97 per cent in August.

The latest figures highlight renewed pressure on household budgets, with food prices remaining a key driver of inflation.

Food inflation accelerates

Food inflation rose across both rural and urban India. Rural food inflation stood at 8.06 per cent in September, compared with 7.18 per cent in urban areas.

The acceleration in food prices was particularly evident in essential kitchen items. Onion prices recorded inflation of 108.09 per cent in September, up from 48.78 per cent in August, making it the highest-inflation item among the five key items highlighted in the government’s release.

This is a developing story

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