Inflationary pressures have intensified across India, with government data revealing that retail inflation jumped to 5.54% in September, up from 4.83% in August.
The primary driver behind the steep increase is a sharp escalation in food prices. Food inflation surged from 5.97% in the previous month to 7.74% in September, severely straining household budgets and increasing the cost of daily essentials.
The data further highlights that rural consumers bore a heavier burden compared to urban dwellers. Rural retail inflation climbed to 6.08%, with food inflation reaching 8.06%. Meanwhile, urban retail inflation stood at 4.88%, while food inflation was recorded at 7.18%.
Economists note that the persistent climb in food and commodity prices continues to erode purchasing power, raising concerns over consumer demand as families face mounting financial pressures heading further into the festive season.