MoSPI provisional data released on 12 October 2026 showed all-India year-on-year retail (CPI) inflation rose to 5.54% in September from 4.83% in August, driven by a 7.74% spike in food inflation.
WHAT HAPPENED
On 12 October 2026 the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), released the provisional Consumer Price Index (CPI) data for September 2026. Headline retail inflation accelerated to 5.54% year-on-year, up from 4.83% in August 2026. This marks the highest headline inflation print in eight months, remaining within the RBI's upper tolerance ceiling of 6.00% but substantially above its 4.00% medium-term target.
KEY FIGURES (BASE YEAR 2024 = 100)
- All-India CPI (Combined) inflation: 5.54% (General Index: 109.49).
- Consumer Food Price Index (CFPI) / Food inflation: 7.74% (up sharply from 5.97% in August).
- Rural inflation: 6.08% (food inflation: 8.06%).
- Urban inflation: 4.88% (food inflation: 7.18%).
- Price collection: Collected by NSO enumerators across 1,407 urban markets and 1,465 villages covering all States and Union Territories.
WHY IT MATTERS
The sharp rise in food prices (notably vegetables, pulses, and edible oils) and elevated international energy prices pushed retail inflation higher. This upward surge validates the Reserve Bank of India Monetary Policy Committee's (MPC) decision on 7 October 2026 to raise the repo rate by 25 basis points to 5.50% and shift its monetary policy stance to "calibrated tightening".
EXAM ANGLE
- CPI is released monthly by MoSPI (NSO) on or around the 12th of each month.
- The RBI's flexible inflation targeting (FIT) framework sets a target of 4.0% with a tolerance band of +/- 2% (2.0% to 6.0%), mandated under the RBI Act, 1934 (amended in 2016).
- Note the rural-urban divide: rural inflation (6.08%) exceeded the 6% ceiling, driven by an 8.06% rural food inflation rate.
- Distinguish CPI (retail, demand-side, used for monetary policy) from WPI (wholesale, supply-side, released by the Office of the Economic Adviser, Ministry of Commerce and Industry).
Published on 12 Oct 2026. Source: MoSPI / NSO official press release. Confirm provisional revisions at mospi.gov.in before an exam.