India's retail inflation accelerated to 5.54% in September 2026, a notable rise from August's 4.83%. This jump is particularly linked to rising food prices, predominantly in vegetables. Rural inflation hit 6.08%, outpacing urban inflation at 4.88%. In response, the Reserve Bank of India increased the benchmark repo rate by 25 basis points on October 7, 2026, and revised its inflation outlook for the fiscal year 2027.
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