Food inflation hits 8.94% in October
Key Highlights
Retail inflation reached 6.09% in October, crossing the RBI’s upper tolerance limit for the first time in two years due to rising food prices.
inflation in India climbed to 6.09% in October 2026, exceeding the upper tolerance limit set by the Reserve Bank of India. This marks the first time in two years that the headline consumer price index has breached the central bank’s 6% threshold for the monetary policy framework.
The All India Consumer Price Index rose from 5.54% in September 2026, driven largely by high food prices. Rural inflation reached 6.63%, while urban inflation stood at 5.41% for the month. The Reserve Bank of India maintains an inflation target of 4%, with a tolerance band of 2% on either side for the period ending March 31, 2031.
Food inflation, tracked by the Consumer Food Price Index, climbed to 8.94% in October 2026 from 7.74% in September 2026. Specific items contributed significantly to these figures, with onion inflation reaching 116.22% and garlic at 60.74%. Conversely, potato and cauliflower prices saw deflationary trends of 14.24% and 10.57% respectively. Other sectors also recorded increases, as inflation in transport rose to 5.84% and restaurant services reached 10.06%.
Based on company and agency reports. For information only; not investment advice.