Retail inflation hits 6.09 per cent in October, breaching RBI upper tolerance limit
GS3Economy · S&T · Environment · Security· Growth, inflation & macro indicators· Prelims·
Why in news
Retail inflation reached 6.09% in October 2026, breaching the RBI's upper tolerance limit of 6% for the first time since October 2024.
Background
The Ministry of Statistics & Programme Implementation reported a spike in food inflation to 8.94% in October 2026. The top five inflating items were onion (116.22%), garlic (60.74%), silver jewellery (52.39%), ginger (48.32%), and lemon (47.30%).
Facts for Prelims
- FactRetail inflation in October 2026: 6.09%
- FactRBI upper tolerance limit for inflation: 6%
- FactFood inflation in October 2026: 8.94%
- FactRBI benchmark policy rate in October: 5.50% (hiked by 0.25%)
- BodyMinistry of Statistics & Programme Implementation (MoSPI) provides inflation data
For Mains
Q. Analyze the factors contributing to food price volatility in India and its impact on the RBI's monetary policy framework.
Dimensions to cover in your answer
- Supply-side shocks: High price volatility in perishables like onions and garlic affecting headline CPI
- Monetary policy trade-offs: Balancing interest rate hikes against economic growth amidst high crude oil prices
- Structural bottlenecks: Inefficiencies in agricultural supply chains leading to localized price spikes
Keywords: Consumer Price Index · Monetary Policy Committee · Inflation Targeting · Supply-side shocks · Benchmark Policy Rate
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