HomeBusinessIndia's Retail Inflation Rises to 6.09% in October as Onion Prices More...

India’s Retail Inflation Rises to 6.09% in October as Onion Prices More Than Double; Food Inflation at 8.94%

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November 13: India’s retail inflation rose to 6.09% in October 2026 from 5.54% in September, official data released on Thursday show, as food prices climbed faster. Food inflation jumped to 8.94% from 7.74%, with onion prices more than double their level a year earlier. October’s reading is above the 6.0% that the Reserve Bank of India projected for the October–December quarter at its policy meeting last month.

Key highlights

  • Headline CPI inflation: 6.09% in October (provisional), up from 5.54% in September (final).
  • Food inflation: 8.94%, up from 7.74%.
  • Rural vs urban: 6.63% in villages and 5.41% in cities.
  • Biggest risers: onion 116.22%, garlic 60.74%, silver jewellery 52.39%, ginger 48.32% and lemon 47.30%.
  • Prices that fell: potato −14.24%, cauliflower −10.57% and coconut −5.60%.
  • Next data: November CPI on December 14; the RBI meets on December 2–4.

The numbers

Source: Ministry of Statistics and Programme Implementation (base 2024=100). October figures are provisional
MeasureOctober 2026September 2026
CPI inflation, all India6.09%5.54%
Rural6.63%6.08%
Urban5.41%4.88%
Food inflation (CFPI), all India8.94%7.74%
Food inflation, rural9.09%8.06%
Food inflation, urban8.68%7.18%

What pushed prices up

Food did most of the work. The food and beverages division rose 8.51% from a year earlier, and the narrower food index 8.94%. Kitchen staples led the item list: onion prices were up 116.22% from October 2025, garlic 60.74%, ginger 48.32% and lemon 47.30%. Silver jewellery rose 52.39%, though that was slower than September’s 87.82%.

Eating out also cost more. Restaurants and accommodation rose 10.06%, and the division covering personal care and miscellaneous goods rose 10.14%. By contrast, housing, water, electricity, gas and fuels rose only 2.90%, health 2.05% and recreation 2.52%. Running a personal vehicle cost 7.52% more than a year earlier.

Where inflation is highest

Among the larger states, the highest rates were in Tamil Nadu (7.29%), Telangana (7.26%), Andhra Pradesh (7.25%), Madhya Pradesh (7.19%) and Odisha (7.17%). Across all states and union territories, Puducherry was highest at 7.96%, and Mizoram lowest at 2.85%.

Our calculation

Calculation: The Press of Asia, from MoSPI data
QuestionAnswerHow we got it
How much did prices rise in one month?About 0.51%All-India index 110.05 in October vs 109.49 in September
How much did food rise in one month?About 0.94%Food index 113.23 vs 112.17
What does 6.09% mean for a family budget?A basket that cost ₹30,000 a year ago now costs about ₹31,827₹30,000 × 1.0609
How much higher is rural than urban inflation?1.22 percentage points6.63% − 5.41%

What it means for India and Asia

For households, the October numbers mean a sharper rise in kitchen costs, and the pressure is greater in rural India, where inflation is higher and food takes a bigger share of spending. For the RBI, which raised its policy rate to 5.50% in October and moved to a stance of “calibrated tightening”, a reading above its own 6.0% quarterly projection strengthens the case for caution at the December meeting. The RBI’s inflation target is 4%.

India is not alone. Vietnam’s inflation reached 5.09% in October, and Sri Lanka’s budget speech this week said inflation there had passed 8.3%. Central banks across the region face a similar choice between supporting growth and holding prices down.

What to watch

  • The RBI Monetary Policy Committee decision on December 4.
  • November CPI on December 14: whether onion and vegetable prices ease with the new crop.
  • Wholesale price data, which show cost pressures earlier in the supply chain.

An onion vendor at a wholesale market in India. Image: Advay m, CC BY-SA 4.0, via Wikimedia Commons. Photo source · Licence

Sources

Written by
Business Desk

The Business Desk covers markets, the economy, companies and personal finance. Stories are checked against at least two credible sources before publication.

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