The consumer price index-based inflation soared to 5.54% in September, marking an uptick to hit 23 months high, according to the data released by the Ministry of Statistics and Programme Implementation on Monday.
The September CPI reading, came slightly below the market estimate of 5.58%. However, it breached the RBI target for the fourth straight month as food rates bite. The rise marks another month of acceleration in consumer price pressures, with food inflation emerging as a key driver.
The rise in CPI inflation last month was driven by food prices, with the Consumer Food Price Index (CFPI) climbing to 7.74% in September from 5.97% in August.
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Food inflation climbed to 7.74% in September from 5.97% in August, adding to pressure on the headline CPI number. Food and beverages inflation also increased to 7.36% from 5.66% in August.
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Rural inflation rose to 6.08% in September from 5.97% in August, while urban inflation increased to 4.88% from 4.31%. The divergence between rural and urban inflation remains notable, with rural consumers facing a sharper rise in overall prices.
Among major CPI components, clothing and footwear inflation stood at 3.93% in September, while housing and utilities inflation was at 2.74%.
Paan, tobacco and intoxicants recorded inflation of 4.8%. Personal care and miscellaneous inflation fell to 13.75% from 15.17% in August.
Restaurants and accommodation services inflation accelerated to 9.36%, while education services inflation rose to 3.94% from 3.73% in August. Recreation, sport and culture inflation stood at 2.16%, while information and communication inflation was at 2.44%.
Health inflation saw a minot uptick at 1.4% month-on-month, while inflation in furnishings and household equipment stood at 3.11%.
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