Retail inflation soars to 2-year high of 6.09%, crosses RBI’s upper limit
Inflation was higher in rural areas at 6.63%, while the urban rate was 5.41%. Food inflation, calculated using the All India Consumer Food Price Index (CFPI), reached a provisional 8.94% in October 2026 from a year earlier. The corresponding rates were 9.09% in rural areas and 8.68% in urban areas.
Consumer Price Index (CPI) inflation in India surged to a 2-year high of 6.09% in October, breaching the Reserve Bank of India's (RBI) tolerance limit. The central bank aims to keep retail inflation within the 2-6% range, with 4% as its target. October's CPI inflation rose from 5.54% in September. Rural inflation stood at 6.63%, while urban inflation was 5.41%.
Food inflation jumped to 8.94%, with onions soaring 116.22%. The RBI raised its benchmark rate by 0.25% to 5.50% in October, signaling potential further hikes if inflation continues to rise. Economists anticipate the central bank will increase rates again in the next 6-9 months.
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