Tag
#Cpi Inflation
Retail inflation rises to two-year high of 5.5% as food, fuel become costlier
Inflation in India has risen to 5.5% in September 2026 from 4.8%, owing to an increase in the prices of food, fuel, and transport. With inflation close to the upper tolerance band of the Reserve Bank of India of 6%, inflation poses a threat to the spending power, savings, and growth of the economy.
Does Inflation Targeting Work in India? Explained
Inflation Targeting, which is a decade-old framework for India (4% CPI), is facing difficulties due to a flat Phillips curve, unanchored expectations, and supply shocks. Rate increases could negatively impact growth without reducing inflation. Future actions should include monetary policies and supply-side measures, better communication, fiscal coordination, and India-specific models.
Why inflation is rising in India? Causes & Impact Explained
In India, the WPI inflation rate has shot up to 9.87% in June 2026 due to factors including a rise in prices of fuels, manufacturing costs, and a weak monsoon causing food inflation. This particular event has brought out the importance of implementing supply-side measures, climate-friendly farming techniques, fuel taxation policy, energy security, and macroeconomic measures.