Retail inflation rises to 6.09% in October, crossing RBI's 6% upper limit

Rising prices of vegetables and other food items are now showing up in retail inflation data. The country's retail inflation rate was 5.54 per cent in September. In October 2026 it rose to 6.09 per cent. Inflation has crossed the Reserve Bank of India (RBI)'s upper limit of 6 per cent for the first time in about two years.

The Ministry of Statistics and Programme Implementation released the figures on Thursday. According to them, food inflation rose from 7.74 per cent in September to 8.94 per cent in October. Food price inflation thus jumped sharply in a single month, and the burden falls directly on household budgets. Food items account for roughly 40 per cent of the Consumer Price Index (CPI), so higher food prices add pressure on overall retail inflation.

Onion topped the list of items whose prices rose the most in October, becoming 116.22 per cent costlier. Garlic rose 60.74 per cent, ginger 48.32 per cent and lemon 47.30 per cent. Prices of silver jewellery went up 52.39 per cent. Four of these items are used in everyday cooking, and the question now is how hard ordinary people will be hit.

Over the past year, retail inflation has climbed as follows: 0.25 per cent in October 2025, 0.71 per cent in November 2025, 1.33 per cent in December 2025, 2.74 per cent in January 2026, 3.21 per cent in February 2026, 3.40 per cent in March 2026 and 3.48 per cent in April 2026. It then stood at 3.93 per cent in May 2026, 4.38 per cent in June, 4.44 per cent in July, 4.83 per cent in August, 5.54 per cent in September and 6.09 per cent in October 2026.

The RBI is responsible for keeping retail inflation within a band of 2 to 6 per cent. Inflation crossed that limit in October, which could add to the central bank's challenges on interest rates. In October, the RBI had raised the repo rate by 0.25 percentage points, the first increase in about four years, taking it to 5.50 per cent.

The Monetary Policy Committee is due to meet from December 2 to 4. The October inflation figures could play an important role in its deliberations. If price pressure persists, the possibility of further changes in interest rates may be discussed.