Retail inflation soars to 2-year high of 6.09%, crosses RBI’s upper limit
India's retail inflation rose to 6.09% in October, exceeding the Reserve Bank of India's 6% tolerance limit. High food prices, particularly for onions and garlic, were the primary drivers of this increase.
Why it matters
This data puts pressure on the Reserve Bank of India to consider further interest rate hikes to stabilize the economy.
Consumer Price Index (CPI) inflation for the month of October soared to 6.9%, crossing the Reserve Bank of India (RBI’s) tolerance threshold. The central bank is mandated to maintain retail inflation in the 2-6% range, with 4% as the ideal target.Retail inflation accelerated to 6.09% in October from 5.54% in September, according to government data released on Thursday.Inflation was higher in rural areas at 6.63%, while the urban rate was 5.41%.Inflation data decodedFood inflation, calculated using the All India Consumer Food Price Index (CFPI), reached a provisional 8.94% in October 2026 from a year earlier. The corresponding rates were 9.09% in rural areas and 8.68% in urban areas.Onion recorded the steepest price rise among the five items with the highest inflation, at 116.22 per cent.
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