will-india’s-inflation-rise-to-all-time-high-in-2026?:all-eyes-on-how-much-costlier-food-fuel-become-amid-us-iran-war

The Central Government is likely to publish the Consumer Price Index (CPI) based inflation data for September 2026 at 4 pm on Monday, 12 October, 2026. The Ministry of Statistics and Programme Implementation’s (MoSPI) National Statistics Office (NSO) publishes retail inflation on 12th of every month. Retail inflation on the rise in India: India’s retail inflation had increased to 4.82% in August 2026, breaching the RBI’s 4% target mark for the third time in a row, based on the new base-year data series. Previously, the inflation print in the preceding month of July had risen to 4.45%. And analysts expect the inflation metric to breach the apex bank’s target of 4% for the fourth consecutive time in September 2026. According to a report by Union Bank of India, as cited by ANI, India’s retail inflation may rise to 5.47% in September from 4.82% in August, driven by a sharp increase in food prices.

What about wholesale inflation? India’s wholesale inflation has risen to 9.92% in August 2026, from 9.78% in July.
Impact of US-Iran war on India’s inflation – What RBI said? Reserve Bank of India in its recently held Monetary Policy Committee (MPC) meeting increased repo rate to 5.50% to fight inflation. The RBI governor Sanjay Malhotra had said CPI inflation increased to 4.8% in August 2026 driven by higher inflation in food and fuel items. He added that country observed notable spikes in certain items such as sugar and onion.deficient Southwest monsoon RBI cites rainfall shortfall as reason behind uptick in future inflation The near-term outlook on inflation points towards continued pressures from supply side, on account of the deficient Southwest monsoon, El Nino conditions and high volatility in international oil prices. – RBI Governor How short was rainfall this year? The southwest monsoon ended the June-September 2026 season with rainfall 13% below the long-period average, while reservoir levels stood at 72%, compared with 92% a year earlier. Total kharif crop sowing was around 1% below last year’s level Oil prices shot up to $120/barrel during Iran war Crude oil prices had risen by 71% in between the Iran war from $70 a barrel to as high as $120 per barrel for a brief period. This has had a cascading effect on prices of those commodities that are especially shipped from the Gulf countries. As of Sunday, 11 October, 2026, the contract prices of international benchmark for oil prices, Brent crude stood at $104 per barrel. Eventually, September would be the ninth straight month of rise in the country’s inflation compiled under the new base-year series. Govt to roll out CPI inflation data for 9th time under new base year series 2024 The September 2026 inflation data is going to be the ninth time that the MoSPI would release inflation figures under the new series with base year 2024. Till December 2025, the Centre had rolled out figures of the annual percentage rise in prices of goods and services based on the old base year series 2012. India moved to new base year series for the 1st time in January 2026 India updated the base year for the Consumer Price Index (CPI) to 2024 from the erstwhile 2012, with an aim to provide a more accurate measure of inflation based on current consumption patterns in the country. How does inflation impact the common man? Inflation means a rise in prices of goods and services. The inflation figure is calculated using the government of India’s Consumer Price Index (CPI), which tracks the prices of hundreds of commonly used goods and services by citizens in the country. In practical terms, if a consumer spent ₹100 on an essential good in August 2025, the same product would cost him approximately ₹104.82 in August 2026 at an inflation rate of 4.82%.