India's inflation hits 5.54% in September 2026 above RBI target
India's inflation jumped to 5.54% in September 2026, its highest in nearly two years and above the RBI's 4% target for the fourth straight month.
Rising food and commodity prices, plus an unfavorable base effect, drove the increase.
This spike was just under what experts predicted.
RBI raises rates 25 basis points
With everyday essentials like onions and ginger getting pricier (food inflation hit a steep 7.74%), the RBI raised interest rates by 25 basis points last week and shifted its monetary policy stance to calibrated tightening.
They've also bumped up their inflation forecast for FY27 to 5.2%, warning that patchy monsoons and changing global oil prices could push costs even higher soon.
Economists say this combo of rising prices and higher rates might make it tougher for families to manage budgets, and could further complicate the central bank's policy decisions.