India retail inflation rises to 5.54pc in September, food prices drive increase

India’s retail inflation rose to 5.54 per cent in September 2026, while food inflation climbed to 7.74 per cent. Rural inflation exceeded urban inflation, reaching 6.08 per cent, as the Consumer Price Index and food price index increased

New Delhi: India’s retail inflation rose to 5.54 per cent in September 2026 on an annual basis, according to provisional data released by the National Statistics Office (NSO) on Monday.

The reading was higher than the 4.83 per cent inflation recorded in August. The rise in inflation was more pronounced in rural areas, where consumer inflation stood at 6.08 per cent in September, compared with 4.88 per cent in urban areas.

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“Retail inflation based on Consumer Price Index in September, 2026 is 5.54 per cent,” the Ministry of Statistics & Programme Implementation said.

“Year-on-year food inflation, based on Consumer Food Price Index, in September, 2026 is 7.74 per cent,” it added.

In August, rural and urban inflation had been recorded at 5.24 per cent and 4.31 per cent, respectively.

Food prices continued to remain a key driver of inflation during the month. The all-India food inflation rate, based on the Consumer Food Price Index (CFPI), climbed to 7.74 per cent in September from 5.97 per cent in August. Rural food inflation came in at 8.06 per cent, while urban food inflation stood at 7.18 per cent.

The CPI (General) index for the combined category increased to 109.49 in September from 108.74 in August. Similarly, the combined CFPI index rose to 112.17 from 110.73 during the same period.

The NSO said price data were collected from 1,407 urban markets, including online markets, and 1,465 villages across states and Union Territories.

The response rate during September was 100 per cent in both rural and urban markets, ensuring comprehensive coverage of price movements.

The government will release the Consumer Price Index data for October 2026 on November 12, 2026, or the next working day if the scheduled date falls on a holiday.