NEW DELHI — India’s retail inflation rose to 5.54 percent in September, a 21-month high, as a low base from a year earlier combined with rising food prices, according to government data released on Monday and reported by The Hindu BusinessLine.
Inflation measured by the Consumer Price Index was 4.83 percent in August and 1.54 percent in September last year. Food inflation climbed to 7.74 percent in September from 5.97 percent in August, the data showed.
Onions were the biggest single contributor, with prices up about 108 percent from a year earlier. Ginger, garlic and lemons also recorded steep increases, while potato and tomato prices fell, according to the figures cited by Indian business media.
Pressure on households and the central bank
The burden was heavier outside the cities. Rural inflation rose to 6.08 percent in September, while urban inflation stood at 4.88 percent, according to provisional data from the Ministry of Statistics and Programme Implementation.
September’s headline figure remains inside the Reserve Bank of India’s tolerance range of 2 to 6 percent, but it is well above the bank’s 4 percent target. The central bank raised interest rates earlier this month, and economists quoted by The Hindu BusinessLine said persistent food-price pressure could prompt further tightening at the December policy meeting.
Analysts noted that inflation rose across most categories in September, suggesting the increase was not driven by food alone, even though food and fuel were the largest contributors.
