India's annual retail inflation accelerated to a 24-month high of 6.09 percent in October 2026, National Statistics Office data showed Thursday, rising from 5.54 percent in September and breaching the Reserve Bank of India's 6 percent upper tolerance threshold for the first time since October 2024. Consumer prices increased 0.51 percent month-on-month, extending an uninterrupted upward trend since January. Consumer food inflation surged 8.94 percent year-on-year in October from 7.74 percent in September; onion prices jumped 116 percent annually while potato prices declined 14.24 percent.
Restaurant and accommodation inflation reached 10.06 percent and jewelry-related personal effects climbed 25.44 percent. Transport inflation accelerated to 5.84 percent from 5.01 percent in September due to higher energy import bills. Rural inflation stood at 6.63 percent versus 5.41 percent in urban centers. Data showed 19 of 43 CPI sub-groups recorded annual inflation of 4 percent or higher in October, against 14 in September. Core inflation rose to 4.5 percent from 4.3 percent in September, according to IDFC First Bank estimates.
Last month, the Reserve Bank of India raised its benchmark repo rate for the first time in nearly four years. The central bank projects inflation to average 6 percent in the October-December quarter and raised its full fiscal-year inflation forecast to 5.2 percent from 5 percent. RBI Governor Sanjay Malhotra warned that weak monsoon rains and strong El Nino conditions threaten agricultural output. Axis Bank economist Tanay Dalal warned of prolonged tightening risks.
India is scheduled to publish November inflation figures on December 14. Since February, rural price growth has consistently outpaced urban areas, reaching a 1.22-percentage-point gap in October. The food and beverages division climbed 8.51 percent year-on-year, while clothing and footwear inflation rose to 4.96 percent from 3.93 percent in September.
