RBI
CPI inflation hits 23-month high of 5.54% in September
12 October 2026 · www.business-standard.com
India's retail inflation, measured by CPI, rose to a 23-month high of 5.54% in September from a revised 4.83% in August, driven by food and fuel-linked costs. Food inflation climbed to 7.74% with onion prices surging over 108%.
Points to Remember
- CPI retail inflation rose to 5.54% in September from 4.83% in August, the highest since October 2024 (6.21%).
- Inflation has stayed above RBI's 4% target for four consecutive months but remains within the 6% upper tolerance limit.
- Consumer Food Price Index (CFPI) inflation rose to 7.74% from 5.97% in August, the highest since December 2024.
- Onion inflation more than doubled to 108.09% from 48.78%; garlic at 54.62% and lemon at 36.41% also rose.
- Rural inflation rose to 6.08% and urban to 4.88%; Tamil Nadu had the highest state inflation at 6.81%.
Why it matters
With inflation above the 4% target for four straight months, talk of rate cuts may pause; customers with repo-linked loans should watch the RBI's next policy stance for any EMI impact.
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