Retail inflation hits 5.54% in September, driven by food price surge

Retail inflation rose to 5.54% in September, the highest level since the new index series began in January, driven mainly by costlier food items. The Consumer Price Index‑based inflation was 4.83% in August, showing a clear jump month‑on‑month. Food basket inflation accelerated to 7.74% in September, up from 5.97% a month earlier, according to government data released on Monday. The Reserve Bank of India responded to the upward pressure by raising the benchmark repo rate by 25 basis points to 5.50% last week. Business Standard’s division‑wise table notes that food and beverages inflation stood at 7.36%, underscoring the broad rise in food prices across categories. The September figure surpasses all prior readings in the current series, signalling that price pressures remain entrenched despite the RBI’s monetary tightening. ## Context