India’s retail inflation accelerates to 5.54% in September
India’s annual retail inflation rose to 5.54% in September from 4.83% in August, exceeding the 5.40% median forecast in a Reuters poll.
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what happened
India’s annual retail inflation reached 5.54% in September, up from 4.83% in August, according to government data released on Monday. Reuters reported that economists polled by the news agency had expected a reading of 5.40%.
Alexandra Hermann Prasad, lead economist at Oxford Economics in London, said the data strengthened the case for additional interest-rate increases. She expects the Reserve Bank of India to deliver two more 25-basis-point hikes, in December and February.
Prasad also said the RBI had shown last week that it was prepared to change its stance quickly as inflation and upside risks continued to build. Overall underlying demand pressures remain soft, she said, while signs that price pressures are broadening continue to increase.
why it matters
The stronger-than-expected inflation reading raises the importance of upcoming Reserve Bank of India decisions. Expectations of two further rate increases may affect the Indian rupee and government bonds by shifting market views on the future path of monetary policy and yields.
instruments
sources
- India's September retail inflation at 5.54% on-year — Reuters, 12 October 2026 at 10:43 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
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