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India's retail inflation rises to 5.54% in September as food inflation hits 7.74% and onion prices surge 108.09%
Our read
October retail inflation will more likely than not stay food-led, with onions and services keeping real incomes tight and discretionary footfall soft.
For operators
With food inflation at 7.74% (rural 8.06%) and onion prices up 108.09%, expect household budgets to tighten and discretionary store trips to soften, while clothing and footwear inflation of just 3.93% leaves room to hold prices and defend footfall through promotions until the October print on 12 November.
Watch
October CPI inflation above September's 5.54% on 12 November would mean food pressure is persisting and squeezing discretionary footfall at retailers.
The report,
India's retail inflation rose to 5.54% in September 2026 from 4.83% in August, MoSPI data showed. Food inflation hit 7.74% and onion prices rose 108.09% year on year. Restaurant prices rose 9.36%, clothing and footwear 3.93%, while car prices fell 4.51%.
- Restaurants and accommodation9.36%
- Food inflation7.74%
- Retail inflation (all items)5.54%
- Clothing and footwear3.93%
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Demand data
From the report. Source details below
| Silver jewellery inflation, September: | 87.80% |
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Next data points
- Onion price inflation against the 108.09% reported for September
- Rural food inflation against the 8.06% reported
- Restaurants and accommodation inflation against the 9.36% reported
- Clothing and footwear inflation against the 3.93% reported