India’s retail inflation rose to 5.54% in September 2026 from 4.83% in August, as food prices increased at a faster pace, according to data from the Ministry of Statistics and Programme Implementation.

Food inflation, measured by the Consumer Food Price Index (CFPI), climbed to 7.74% in September from 5.97% a month earlier. The increase in food prices was sharper than the rise in headline inflation, pointing to continued pressure on household spending.

“Retail inflation based on Consumer Price Index in September, 2026 is 5.54 per cent,” the ministry said.

The latest figures also show a widening gap between rural and urban inflation, with rural households facing a higher rate of price increases.

Rural Inflation Outpaces Urban Rate

Rural retail inflation rose to 6.08% in September from 5.24% in August. Urban inflation increased to 4.88% from 4.31% over the same period.

The gap was also visible in food prices. Rural food inflation stood at 8.06% in September, compared with 7.18% in urban areas.

The ministry said, “Year-on-year food inflation, based on Consumer Food Price Index, in September, 2026 is 7.74 per cent.”

The combined Consumer Price Index rose to 109.49 in September from 108.74 in August. The food price index increased to 112.17 from 110.73.

The divergence between rural and urban inflation suggests that price pressures are not being felt evenly across households. However, the aggregate figures alone do not establish how much individual households have cut consumption or how the increase has affected their purchasing power.

Food Prices Remain Key Inflation Risk

The acceleration in food inflation is the central concern in the September data. With food prices rising faster than the overall consumer price index, the headline rate understates the pressure faced by households whose budgets devote a substantial share to food.

The figures will be relevant to policymakers assessing whether the rise in inflation is temporary or likely to persist. A single monthly reading, however, is not enough to establish a sustained trend or determine the implications for monetary policy.

For the September release, price data were collected from 1,407 urban markets, including online markets, and 1,465 villages. The ministry reported a 100% response rate in both rural and urban areas.

The next Consumer Price Index release is scheduled for November 12, 2026, or the next working day.