Our Bureau
Mumbai
India’s retail inflation rose to 5.54% in September 2026 from 4.83% in August, driven by a sharp increase in food prices, particularly onions, according to provisional data released by the Ministry of Statistics and Programme Implementation on Monday. Food inflation climbed to 7.74% during the month, up from 5.97% in August, adding to pressure on household budgets.
Onion prices recorded an annual inflation rate of 108.09% in September, compared with 48.78% in the previous month, making it the item with the highest price rise among those tracked in the Consumer Price Index (CPI). The latest figures mark the highest retail inflation reading under the revised CPI series, which uses 2024 as its base year.
Other essential food items also witnessed significant price increases. Garlic prices recorded an inflation rate of 54.62%, up from 43.60% in August. Lemon inflation rose to 36.41% from 15.15% during the same period.
The impact of rising prices was more pronounced in rural areas. Retail inflation in rural India increased to 6.08% in September from 5.24% in August, while urban inflation rose to 4.88% from 4.31%.
The inflation data comes amid concerns over rising living costs and monetary policy. The Reserve Bank of India recently raised its benchmark repo rate by 25 basis points to 5.50% to address inflationary pressures. The September reading highlights the growing influence of food prices on the broader cost of living, with further price movements likely to remain a key concern for policymakers and households.