Retail inflation at almost 2-year high at 5.54%, driven by food prices surge

Retail inflation moved closer to the Reserve Bank of India’s upper tolerance limit of 6 per cent in September, rising to 5.54 per cent from 4.83 per cent in August as food prices recorded a sharper increase. Food inflation climbed to 7.74 per cent during the month, against 5.97 per cent in August, according to data released by the Ministry of Statistics and Programme Implementation on Monday.The September reading marked the highest inflation rate since the introduction of the new Consumer Price Index (CPI) series with a 2024 base year. Compared with the earlier 2012-base series, the revised index uses an updated framework to measure changes in household prices. On a comparable historical measure, inflation was at its highest level since late 2024.The pressure was more pronounced in rural India, where retail inflation reached 6.08 per cent, up from 5.24 per cent in August.