FX.co ★ India Inflation Breaches RBI Threshold

India’s headline inflation rate accelerated to 6.09% in October 2026 from 5.54% in September, exceeding market expectations of 5.93%. This marked the first time since October 2024 that inflation breached the Reserve Bank of India’s upper tolerance limit of 6%.

Food prices, which constitute a substantial share of the consumer price basket, rose by 8.94% year-on-year, up from 7.74% in the previous month. Price pressures also remained strong in several services and discretionary categories, with inflation reaching 10.06% for restaurants and accommodation, and 10.14% for personal care, social protection, and other miscellaneous goods and services.

Transportation inflation stood at 5.84%, continuing its rebound from lower levels earlier in the year. The increase was largely driven by higher fuel costs, as the sharp rise in global oil prices—of which India is a major net importer—filtered through to consumers. On a month-on-month basis, consumer prices in India increased by 0.51% in October.