India's retail inflation rose to a two-year high of 6.09% in October 2026, breaching the RBI's upper tolerance limit of 6%.
Food inflation climbed to 8.94% from 7.74% in September, driven by rising prices of essential food items and vegetables.
Onions, garlic, ginger, lemons and silver were among the five items recording the highest inflation rates nationally.
Rural inflation reached 6.63%, compared with 5.41% in urban areas, highlighting sharper price pressures in rural India.
Erratic weather, crop diseases and rising global commodity costs amid the West Asia conflict are adding to concerns over food prices.
India's retail inflation rose to a two-year high of 6.09 per cent in October 2026, up from 5.5 per cent in September, driven largely by rising food prices, according to data released by the Union Ministry of Statistics and Programme Implementation (MoSPI) on November 12, 2026.
The increase pushed inflation above the Reserve Bank of India’s (RBI) upper tolerance limit of 6 per cent. The central bank's inflation target is 4 per cent, with a tolerance band of 2-6 per cent, according to a gazetted notification.
Food inflation rose to 8.94 per cent in October from 7.74 per cent in September, reflecting higher prices of essential food items and vegetables.
Onions, garlic, ginger and lemons were among the five items recording the highest inflation rates nationally, alongside silver, the only non-food item in the group.
On November 12, the average retail price of onions stood at Rs 53.81 per kg, nearly double the Rs 26.91 recorded a year earlier. Sugar prices also rose, reaching Rs 60.40 per kg compared with Rs 46.59 a year earlier.
Erratic weather, rainfall deficits linked to El Niño and crop diseases have contributed to pressure on food prices.
Food and beverages were the main contributors to the increase in headline retail inflation, measured by the Consumer Price Index (CPI). Their weight in the CPI basket has declined from 45.86 per cent to 36.75 per cent.
Rising food prices have coincided with higher global commodity costs amid the ongoing conflict in West Asia.
Disruptions to energy supplies and international trade have pushed up the costs of crude oil, fertilisers and other commodities, adding pressure on agricultural production and food transportation.
Inflation continued to be higher in rural India than in urban areas.
Rural retail inflation rose to 6.63 per cent in October from 6.08 per cent in September, while urban inflation increased to 5.41 per cent from 4.88 per cent.
According to credit rating agency ICRA, inflation increased across 11 subdivisions of the CPI in October compared with September. The only exception was the category covering personal care, social protection and miscellaneous goods and services.