Retail Inflation Rises To 6.09% In Oct 2026; Food Inflation Climbs, Creating Price Pressures: PHDCCI
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India’s Consumer Price Index (CPI)-based retail inflation increased to 6.09% (provisional) in October 2026, compared with 5.54% in September 2026, reflecting an increase in price pressures, particularly in the food segment. Food inflation, measured by the Consumer Food Price Index (CFPI), accelerated to 8.94% in October from 7.74% in the preceding month.
According to the latest CPI data, rural inflation stood at 6.63%, while urban inflation was recorded at 5.41% in October 2026. Food inflation remained elevated across both segments, at 9.09% in rural areas and 8.68% in urban areas, indicating that food-related price pressures were relatively broad-based.
PHDCCI’s CPI ForeARIMA ® proprietary forecasting model had projected CPI inflation at 6.3%, indicating a close alignment between its forecast and the subsequently reported October inflation reading of 6.09%.
“The increase in retail inflation to 6.09% in October, alongside the acceleration in food inflation to 8.94%, highlights the importance of closely monitoring food price developments. While inflation trends across individual categories remain varied, the food component warrants particular attention given its significance in the consumption basket”, said Anil Gupta, President, PHDCCI.
The commodity-level data indicate considerable divergence in price movements. Onion inflation increased sharply to 116.22% in October 2026, compared with 108.13% in September 2026. Garlic inflation rose to 60.74%, while ginger and lemon recorded inflation of 48.32% and 47.30%, respectively. Silver jewellery also witnessed elevated inflation of 52.39%.
In contrast, prices of certain vegetables continued to register annual declines. Potato inflation stood at -14.24%, while cauliflower recorded -10.57% and coconut -5.60%. This divergence indicates that inflationary pressures remain concentrated in specific food items rather than being uniform across the entire food basket.
At the broader expenditure-group level, restaurants and accommodation recorded inflation of 10.06%, while personal care, social protection and miscellaneous goods and services registered 10.14%. Transport inflation stood at 5.84%, while housing, water, electricity, gas and other fuels recorded relatively moderate inflation of 2.90%.
“The October inflation reading underscores the importance of distinguishing between headline inflation and its underlying components. The increase in food inflation, alongside relatively moderate price increases in housing and health-related categories, reflects the uneven nature of price pressures across the consumption basket. Sustained moderation in food inflation would be important for improving household purchasing power and providing greater predictability to the monetary policy environment” said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.
