CPI Inflation September 2026: 23-Month High of 5.54%
Why in the news
The National Statistics Office (NSO) said on 12 October 2026 that retail inflation reached 5.54% in September, its highest level in 23 months, as food and services became costlier.
Key facts
- Headline CPI: 5.54% in September against a revised 4.83% for August (first reported as 4.82%).
- 23-month high: the highest reading since October 2024 (6.21%, back-series data).
- RBI target: inflation has been above the 4% target for four straight months and is close to the 6% upper tolerance band.
- Food inflation (CFPI): 7.74%, up from 5.97% in August.
- Core inflation: rose to 4.6% from 4.4%.
- Items: onion inflation was 108.09%, while tomato (-8.62%) and potato (-11.50%) stayed in deflation.
- Policy: days earlier the MPC had raised the repo rate by 25 basis points to 5.50%; the RBI sees FY27 inflation averaging 5.2%.
| Measure | August 2026 | September 2026 |
|---|---|---|
| All-India CPI | 4.83% | 5.54% |
| Rural | 5.24% | 6.08% |
| Urban | 4.31% | 4.88% |
| Food (CFPI) | 5.97% | 7.74% |
About the CPI
The Consumer Price Index is compiled by the NSO under the Ministry of Statistics and Programme Implementation (MoSPI). The new series uses 2024 as its base year (2024=100). Among large states in September, Tamil Nadu was highest at 6.81%, followed by Odisha (6.7%) and Madhya Pradesh (6.68%).
Exam angle
- Remember the RBI inflation target: 4% with a band of plus or minus 2%.
- The new CPI series has base year 2024; the old series used 2012.
- Food prices, especially onion, drove the September rise.