Retail inflation rises to 5.54% in September on costlier food items

India's retail inflation rose to 5.54% in September, driven primarily by an increase in food prices. This follows a recent 25 basis point repo rate hike by the Reserve Bank of India to address inflationary pressures.
Why it matters
Rising inflation impacts consumer purchasing power and influences central bank monetary policy, which affects the broader economic climate.
Retail inflation rose to 5.54% in September, mainly due to costlier food items, according to government data released on Monday (October 12, 2026).
The Consumer Price Index-based inflation was at 4.83% 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% from 5.97% the previous month.
Last week, the Reserve Bank hiked the benchmark lending rate (repo) by 25 basis points to 5.50% amid inflationary concerns.
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