Home / Business and Economy / India's Inflation Surges to 23-Month High on Food Costs
India's Inflation Surges to 23-Month High on Food Costs
12 Oct
Summary
- Retail inflation climbed to a 23-month high of 5.54% in September.
- Food inflation surged to 7.74%, with onion prices more than doubling.
- Inflation remained above the RBI's target for four consecutive months.
India's retail inflation, measured by the Consumer Price Index (CPI), climbed to a 23-month high of 5.54% in September, an increase from August's revised figure of 4.83%. This marks the highest inflation rate since October 2024.
The primary driver behind this surge was food inflation, which escalated to 7.74% in September from 5.97% in August. Onion prices, in particular, saw an inflation rate exceeding 108%, significantly contributing to the overall food price increase.
Beyond food, rising costs in transportation and services also added pressure to the overall inflation figures. Rural inflation saw an increase to 6.08%, while urban inflation rose to 4.88%.
This persistent inflation has kept figures above the Reserve Bank of India's 4% target for four consecutive months. Economists emphasize the importance of upcoming crop arrivals for controlling future food inflation. Projections suggest headline inflation may hover around 6% in October 2026.
