PR No – 192
12th Oct 2026
New Delhi
India’s Retail Inflation Rises to 5.54% in September 2026; Food Inflation Climbs to 7.74%
New Delhi, 12 October 2026
India’s year-on-year retail inflation increased to 5.54% (Provisional) in September 2026, compared with 4.83% in August 2026. Food inflation registered a sharper increase, rising to 7.74% in September from 5.97% in August, as measured by the Consumer Food Price Index (CFPI). The latest figures indicate an acceleration in consumer price pressures, particularly in food, with implications for household purchasing power and consumption expenditure said Mr. Anil Gupta, President, PHDCCI.
The inflation numbers are higher than “PHDCCI PriceNexus Engine (PPNE)” forecast of 4.42%. Inflation remained higher in rural areas than in urban areas during September 2026. Rural CPI inflation increased to 6.08%, compared with 5.24% in August, while urban inflation rose to 4.88% from 4.31%.
Rural food inflation increased to 8.06%, while urban food inflation reached 7.18%, compared with 6.17% and 5.64%, respectively, in August 2026. The higher rural inflation rates underline the importance of monitoring food prices and their implications for rural household budgets, he added.
Among the major consumption divisions, personal care, social protection and miscellaneous goods and services recorded the highest inflation at 13.75% in September 2026. Restaurants and accommodation services recorded inflation of 9.36%, followed by food and beverages at 7.36%, and transport at 5.01%.
Inflation was comparatively moderate in health at 1.40%, recreation, sport and culture at 2.16%, information and communication at 2.44%, and housing, water, electricity, gas and other fuels at 2.74%.
At the individual-item level, onion prices recorded year-on-year inflation of 108.09% in September 2026, compared with 48.78% in August. Silver jewellery inflation stood at 87.80%, ginger at 62.85%, garlic at 54.62%, and lemon at 36.41%.
Conversely, potato prices declined by 11.50% year-on-year, tomato prices by 8.62%, motor cars and jeeps by 4.51%, lady’s finger by 4.48%, and coconut by 3.99%. These contrasting movements reflect considerable variation in price changes across individual commodities.
The September 2026 inflation data highlight the need for continued monitoring of food prices and reasons for experiencing relatively high inflation, he added.
For businesses, persistent price increases in selected consumer categories may affect input costs, pricing decisions and household demand. For households, higher food inflation can place pressure on real purchasing power, particularly where expenditure is concentrated on essential commodities.
A disaggregated assessment of inflation across rural and urban markets, states and consumption categories can help policymakers identify areas of concentrated price pressure and calibrate responses to evolving conditions. Continued monitoring of food supply, market arrivals, transportation and distribution efficiency would be relevant to assessing the persistence of these pressures.
“Inflation trends across consumption categories remain uneven, with particularly high price increases in personal care and miscellaneous goods and services, restaurants and accommodation, and selected food commodities. A granular assessment of price pressures, supported by efficient logistics, better market information and coordinated supply-side measures, can help improve price stability while supporting sustainable economic growth said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.”