India's retail inflation climbs to 5.54% in September
Retail price growth in India hit 5.54% in September, up from 4.83% in August and beating forecasts of 5.4%. Food inflation accelerated to 7.74%, and the rate has now risen for 11 straight months.
By Standard Topic. AI-generated from the reporting listed under Coverage. Published . Updated .
This story is no longer being updated. It reflects reporting up to .
What happened
India's retail inflation rose to 5.54% in September from 4.83% in August, the highest since October 2024 and above market forecasts of 5.4%. It was the 11th straight monthly increase, and the rate neared the upper end of the central bank's 2%-6% tolerance band. Food inflation accelerated to 7.74%, with onion prices more than doubling over the year.
Why it matters
The rate is approaching the upper limit of the Reserve Bank of India's tolerance band. Indian stocks closed lower ahead of the release, with markets pulling back from risk.
Timeline
- Oct 12, 6:41 AM ET: India's headline inflation rose to 5.54% in September, above the 5.4% market expectation.
- Oct 12, 7:31 AM ET: The release came a day after the Reserve Bank of India raised its repo rate by 25 basis points to 5.50%.
- Oct 13, 2:08 AM ET: Food inflation was reported at 7.74%, with onion inflation reaching 108.09% in September.
More from World
- Iran attacks on Hormuz shipping cut traffic and lift oil prices
- Rubio visits India to discuss trade and Venezuelan crude
- Second possible Chinese drone mothership spotted near Guangzhou
- China's clean energy exports rise as Iran war boosts demand
- US sanctions five Chinese firms over AI trade secrets theft
- Modi marks Dussehra in Delhi, urging India to defeat enemies