India's retail inflation rose to 5.54% in September 2026, up from 4.83% in August, according to provisional figures released by the Ministry of Statistics and Programme Implementation (MoSPI) on 12 October 2026. The figure is the year-on-year change in the all-India Consumer Price Index (CPI), which uses 2024 as its base year.
Food prices rose faster than the overall index. Inflation measured by the Consumer Food Price Index (CFPI) was 7.74% in September, against 5.97% in August.
Rural and urban figures
Prices rose faster in villages than in cities in both August and September.
| Measure | August 2026 (final) | September 2026 (provisional) |
|---|---|---|
| CPI - rural | 5.24% | 6.08% |
| CPI - urban | 4.31% | 4.88% |
| CPI - combined | 4.83% | 5.54% |
| Food (CFPI) - rural | 6.17% | 8.06% |
| Food (CFPI) - urban | 5.64% | 7.18% |
| Food (CFPI) - combined | 5.97% | 7.74% |
What became costlier and what became cheaper
MoSPI lists the five key items with the highest and the lowest inflation at the all-India level. Four of the five fastest-rising items are kitchen staples.
Highest inflation in September 2026 (over September 2025):
- Onion: 108.09% (48.78% in August)
- Silver jewellery: 87.80% (106.81% in August)
- Ginger: 62.85% (73.82% in August)
- Garlic: 54.62% (43.60% in August)
- Lemon: 36.41% (15.15% in August)
Lowest inflation in September 2026:
- Potato: -11.50%
- Tomato: -8.62% (it was -31.09% in August)
- Motor car and jeep: -4.51%
- Lady's finger: -4.48%
- Coconut: -3.99%
A negative figure means the item cost less than in the same month last year. Tomato is still cheaper than a year ago, but the gap narrowed sharply within one month.
Inflation by spending category
The release also gives inflation for each broad division of household spending (combined rural and urban):
| Division | Inflation, September 2026 |
|---|---|
| Personal care, social protection and miscellaneous goods and services | 13.75% |
| Restaurants and accommodation services | 9.36% |
| Food and beverages | 7.36% |
| Transport | 5.01% |
| Paan, tobacco and intoxicants | 4.80% |
| Education services | 3.94% |
| Clothing and footwear | 3.93% |
| Furnishings, household equipment and routine household maintenance | 3.11% |
| Housing, water, electricity, gas and other fuels | 2.74% |
| Information and communication | 2.44% |
| Recreation, sport and culture | 2.16% |
| Health | 1.40% |
Key points for households
- A reading of 5.54% means the basket of goods and services tracked by the index cost 5.54% more in September 2026 than in September 2025. It is an average - a family's own experience depends on what it buys.
- Food, eating out and personal-care items rose faster than the average. Housing, health and communication rose more slowly.
- Rural households faced higher inflation (6.08%) than urban households (4.88%).
- The September numbers are provisional and may be revised when the October data comes out.
How the data is collected
MoSPI said price data is collected every week by field staff of the National Statistics Office from 1,407 urban markets, including online markets, and 1,465 villages across all States and Union Territories. The response rate in September was 100% in both rural and urban markets. For petrol, diesel and LPG, the prices used are those on the 15th of the month.
State-wise and item-wise indices can be downloaded from the ministry's eSankhyiki portal. MoSPI cautions that some State-level item indices are based on a small number of price quotations and should be used with care.
What happens next
The CPI for October 2026 will be released on 12 November 2026 (Thursday), or on the next working day if that day is a holiday.
Inflation data is watched closely by the Reserve Bank of India. For recent central bank steps, see our reports on the RBI's higher daily CRR requirement for banks and the RBI's forex market measures and dollar window for oil companies.
