<p><a href="https://www.mid-day.com/business/business-news/article/indias-retail-cpi-inflation-rises-482-per-cent-in-august-government-23649968" target="_blank" rel="none noopener">India's headline retail inflation</a> increased to 6.09 per cent in October led by costlier food items, according to data released by the Ministry of Statistics on Thursday.</p>
<p>The CPI-based inflation was at 5.54 per cent in September.</p>
<h2>CPI inflation breaches RBI's tolerance band</h2>
<p>This is the first time since October 2024 that the consumer price index (CPI) based headline retail inflation breached the Reserve Bank of India's upper tolerance limit of 6 per cent, according to news agency PTI.&nbsp;</p>
<p>The central bank is mandated to keep inflation within the range of 2-6 per cent and in October 2024, retail inflation was 6.25 per cent, as per PTI.</p>
<p>The apex bank in October had <a href="https://www.mid-day.com/business/business-news/article/rbi-mpc-rbi-hikes-repo-rate-to-55-per-cent-rules-out-rate-cuts-in-near-term-23653790" target="_blank" rel="none noopener">increased the benchmark policy rate or repo rate</a> by 0.25 per cent to 5.50 per cent, its first hike in nearly four years, while signalling that further rate hikes could follow amid rising inflation, a weak rupee and high crude oil prices. RBI Governor had said rate cuts were off the table in the near term.</p>
<h2>Food prices rise</h2>
<p>According to the data, food inflation rose to 8.94 per cent in October 2026 from 7.74 per cent in the previous month.</p>
<p>Onion prices rose 116.22 per cent, while the prices of garlic increased 60.74 per cent. Ginger prices increased 48.32 per cent, while the cost of lemon jumped 47.30 per cent. Among the non-food items silver jewellery prices increased 52.39 per cent.</p>
<h2>Rural and urban inflation</h2>
<p>The rural inflation during October stood at 6.63, and the urban inflation was at 5.41. In the previous month, rural inflation stood at 6.08 per cent. The urban inflation was at 4.88 per cent in July.&nbsp;</p>
<h2>RBI's inflation forecast</h2>
<p>According to the <a href="https://www.mid-day.com/business/business-news/article/rbi-mpc-minutes-indicate-further-rate-hikes-amid-inflation-risks-23656356" target="_blank" rel="none noopener">RBI's Monetary Policy Committee (MPC) meeting minutes</a>, the Governor noted that inflationary pressures are building up, with headline CPI is projected to touch the upper tolerance band in Q3 and remain significantly above 5 per cent in the next two quarters.</p>
<p>According to the RBI, the CPI inflation for 2026-27 is projected to be 5.2 per cent with Q2 at 4.9 per cent; Q3 at 6.0 per cent; and Q4 at 5.7 per cent. Inflation for Q1:2027-28 is projected at 5.6 per cent with risks being evenly balanced. Core inflation is projected at 4.4 per cent for 2026-27.</p>
<p><em><strong>(With inputs from PTI)</strong></em></p>
<p>&nbsp;</p>

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India's retail inflation rises to 6.09 per cent in October; breaches RBI's upper limit

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