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Rising prices and the RBI rate hike

Retail inflation jumps to 5.54% in September; Congress attacks government over food prices

12 Oct 2026 · 5 outlets · 1 min read

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In 30 seconds
  1. CPI inflation was 5.54% in September; food inflation was 7.74% (provisional).
  2. Restaurant and hotel services rose 9.36% and goods transport services 14.73% on a year earlier.
  3. The government has cut edible oil duties and tightened sugar stock limits to ease prices.

Retail inflation rose to 5.54% in September 2026 from 4.83% in August, MoSPI said on 12 October, the highest so far under the new 2024-base series and the fourth straight month above the RBI's 4% target. Food inflation reached 7.74%. Onion prices were up 108.09% on a year earlier and garlic 54.62%. Rural inflation was 6.08% and urban 4.88%. On 13 October Congress's Jairam Ramesh said food prices had 'crossed all limits' and that it was 'time for him [the PM] to pack his bags and go'.

What it means for India

Food is where families feel it most: onion prices more than doubled in a year. Among large states, Tamil Nadu (6.81%), Odisha (6.70%), Madhya Pradesh (6.68%) and Telangana (6.64%) had the highest inflation.

Checked

Claim by claim

✓Verified

Retail inflation was 5.54% in September 2026.

Said by MoSPI

MoSPI's provisional figure; it will be finalised with the October release.

MoSPI (via PIB)
✓Verified

Onion prices rose 108% in September from a year earlier.

Said by Jairam Ramesh, Congress

MoSPI's release lists onion inflation at 108.09% in September 2026, up from 48.78% in August.

MoSPI (via PIB) · The Times of India
?Unverified

Retail inflation is at its highest level in 23 months.

Said by Jairam Ramesh, Congress

The new 2024-base series publishes inflation only from January 2026, and The Economic Times calls 5.54% the highest of 2026 under that series. A 23-month comparison would need the old series and could not be checked here.

MoSPI (via PIB) · The Economic Times
In their own words

What each side says

Congress

Jairam Ramesh wrote, 'Vote Theft is the Truth. Back-Breaking Inflation is the Reality', said the impact is not confined to food but extends to transport, education and clothing, and alleged the government is 'robbing savings'.

The Times of India · The Hindu
Government

The government capped sugar dealers' stocks at 1,000 quintals, to be held for no more than 15 days, from 15 October to 30 November to curb hoarding, and said average retail sugar prices had fallen 15% from their August peak. It had earlier cut edible oil import duties.

PIB
As it unfolded

Step by step

  1. MoSPI releases September CPI data.

  2. Congress's Jairam Ramesh posts his attack on X.

Honest gaps

Not yet known

  • ?Whether food prices ease as the new kharif crop arrives, or stay high because of the weak monsoon.
Who reported this

Sources

Left-leaning · 1Centre · 3Official record · 1

5 outlets across the spectrum. Leanings are a rough guide to who reported it, not a verdict on accuracy.

  1. MoSPI (via PIB)Press Release of Consumer Price Index on Base 2024=100 for September, 2026
  2. The Times of India'Time for PM to pack his bags and go': Congress targets Centre as food inflation hits 7.74%
  3. The Economic TimesIndia's retail inflation quickens to 5.54% in September from 4.83% in August
  4. The HinduGovernment not only 'stealing' votes but also savings: Congress on rise in inflation
  5. PIBGovernment Revises Sugar Stock Holding Norms to Prevent Hoarding and Ensure Smooth Supply to Consumers During Festive Season

Spasht writes original summaries. Follow the links to read each outlet's own report. Revision 1.