News alert

Retail inflation (CPI) at 5.54% year-on-year; food inflation at 7.74%, rural food 8.06%, urban food 7.18%

Tuesday, 13 October 2026 at 8:30 am ISTSource: CapitCue, from MoSPI data as reported and the sources listed below

India’s retail inflation for September 2026 is 5.54% year-on-year, up from 4.82% in August. Food inflation is 7.74%, up from 5.95%.

India’s retail inflation, measured by the Consumer Price Index (CPI), is 5.54% year-on-year for September 2026, according to the figures received by CapitCue. Food inflation is much higher at 7.74% overall, with rural food inflation at 8.06% and urban food inflation at 7.18%. MoSPI (the statistics ministry) had scheduled the September release for 12 October. CapitCue could not yet find the official press release online, so please check these figures against MoSPI before relying on them.

The numbers

Headline CPI inflation: 5.54% year-on-year. Food inflation: 7.74%. Rural food inflation: 8.06%. Urban food inflation: 7.18%. Food prices are rising faster in villages than in cities.

How this compares with the earlier months

In August 2026, MoSPI reported headline inflation of 4.82% (up from 4.45% in July), and food inflation of 5.95%, with rural food inflation at 6.13% and urban food inflation at 5.64%. So headline inflation has risen by about 0.7 percentage points in a month, and food inflation by about 1.8 points. A Mint poll of economists before the release had expected about 5.6% for September, so the 5.54% reading is close to what was expected.

Where it stands against the RBI’s target

The Reserve Bank of India aims for inflation of 4%, with a tolerance band of 2% to 6%. At 5.54%, headline inflation is inside the band but close to the top of it, and food inflation is well above it. On 7 October the RBI raised the repo rate by 25 basis points to 5.50% and moved to a stance of calibrated tightening, saying that rate cuts are off the table for now.

Why it matters for markets

Higher inflation can keep interest rates high for longer, which tends to weigh on rate-sensitive sectors such as banks, housing finance, real estate and autos, and it eats into household spending, which matters for consumer companies. Rising food prices are watched closely by FMCG companies and by the RBI. The Nifty fell 0.7% on Monday and was indicated flat to slightly higher on Tuesday. US inflation data is also due this week.

This story was compiled by CapitCue from the figures received and the sources listed below. The September figures have not been independently verified against the official release. CapitCue provides information only; it is not investment advice.

Sources: MoSPI: Press release of CPI for August 2026 · UNI India: retail inflation in August · Mint poll: retail inflation to reach 5.6% in September · CapitCue: RBI MPC raises repo rate by 25 bps to 5.50%

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