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Business
India's Retail Inflation Hits 6.09%, Crossing RBI's Upper Tolerance Limit After Two Years
✍️ Times of India
🗓 13 Nov 2026, 05:49 AM
👁 10
Retail price growth rose to 6.09% in the latest CPI report, pushing inflation above the Reserve Bank of India's 4‑6% tolerance band for the first time in two years.
The Consumer Price Index released this week showed retail inflation at 6.09%, breaching the Reserve Bank of India's (RBI) upper tolerance limit of 6% for the first time since 2022. The rise places overall price pressure back within the 4‑6% target range but above the ceiling that the central bank monitors closely.
Analysts attribute the jump mainly to higher food and fuel prices, which have been volatile in recent months. Core inflation, which excludes these items, remained relatively stable, indicating that the headline surge is driven by external factors rather than persistent demand‑side pressures.
The RBI, which aims to keep inflation anchored within its band, may consider tightening monetary policy if the trend continues. Market participants will watch upcoming policy meetings for signals on interest‑rate adjustments.
Meanwhile, the government is expected to review supply‑side measures to ease food price pressures, a key component of the current inflationary spike.
Analysts attribute the jump mainly to higher food and fuel prices, which have been volatile in recent months. Core inflation, which excludes these items, remained relatively stable, indicating that the headline surge is driven by external factors rather than persistent demand‑side pressures.
The RBI, which aims to keep inflation anchored within its band, may consider tightening monetary policy if the trend continues. Market participants will watch upcoming policy meetings for signals on interest‑rate adjustments.
Meanwhile, the government is expected to review supply‑side measures to ease food price pressures, a key component of the current inflationary spike.