Retail inflation, measured by the All India Consumer Price Index (CPI) with the base year 2024, rose to 5.54% (Provisional) in September 2026 from 4.83% (Final) for August 2026, amid persistently high food prices. The CPI reading remained above the Reserve Bank of India’s (RBI's) medium-term inflation target of 4%. RBI is mandated to maintain headline retail inflation at 4%, while allowing it to move within a tolerance band of 2% to 6%, for the five-year period from April 1, 2026, to March 31, 2031. Meanwhile, the August 2026 figure has been revised upward to 4.83% from 4.82% projected last month. Moreover, CPI inflation for Rural and Urban rose to 6.08% and 4.88% in September 2026, from 5.24% and 4.31% in August 2026, respectively. The index value for CPI for rural, urban and combined stood at 110.11, 108.71 and 109.49, respectively, for the month of September 2026.
Food inflation, measured by the Consumer Food Price Index (CFPI), surged to 7.74% (Provisional) for September 2026 as compared to 5.97% (Final) in August 2026. Corresponding inflation rates for rural and urban stood at 8.06% and 7.18%, respectively in September 2026, as compared to 6.17% and 5.64%, respectively in August 2026. Index value for CFPI for rural, urban and combined stood at 112.21, 112.10 and 112.17, respectively, for September 2026.
Top five key items with high inflation at All India combined level in September 2026 were Onion at 108.09% as against 48.78% in August 2026, Silver Jewellery at 87.80% in September 2026, as against 106.81% in August 2026, Ginger at 62.85% in September 2026, as against 73.82% in August 2026, Garlic at 54.62% in September 2026, as against 43.60% in August 2026, Lemon at 36.41% in September 2026, as against 15.15% in August 2026.
Top five key items with low inflation at All India combined level in September 2026 were Potato at (-)11.50% as against (-)13.15% in August 2026, Tomato at (-)8.62% in September 2026 as against (-)31.09% in August 2026, Motor car and jeep at (-)4.51% in September 2026 as against (-)6.73% in August 2026, Lady's finger at (-)4.48% in September 2026 as against (-)5.41% in August 2026, Coconut at (-)3.99% in September 2026 as against (-)3.00% in August 2026.
Moreover, inflation in Food and beverages increased to 7.36% in September 2026 from 5.66% (provisional) in August 2026, inflation in Transport rose to 5.01% in September 2026 from 4.60% (provisional) in August 2026, inflation in Restaurants and accommodation services surged to 9.36% in September 2026 from 8.38% (provisional) in August 2026, inflation in Clothing and footwear increased to 3.93% in September 2026 from 3.56% (provisional) in August 2026, inflation in Paan, tobacco and intoxicants rose to 4.80% in September 2026 from 4.71% (provisional) in August 2026.
