India inflation October 2026: 6.09%, a 2-year high above RBI's limit

India’s retail inflation rose to 6.09% in October 2026, its highest in two years and above the Reserve Bank of India’s 6% upper limit, government data released on Thursday, 12 November showed. It was 5.54% in September.

The last time inflation was this high was October 2024, when it hit 6.21%, according to the Ministry of Statistics and Programme Implementation (MoSPI).

What pushed it up

Food. Food inflation climbed to 8.94% from 7.74% in September, Deccan Herald and The Statesman reported. Villages were hit harder than cities: rural inflation rose to 6.63%, while urban inflation went up to 5.41%.

What the RBI may do

The RBI’s job is to keep inflation between 2% and 6%. Having raised its repo rate by 0.25 percentage points to 5.50% in October, its first rise in nearly four years, it now faces a reading above its own ceiling.

October’s figure is the last inflation data the RBI will see before its policy announcement on 4 December, and Business Today reported that economists now see another rate hike as likely. One economist warned inflation could stay above 6% until June 2027.

Why it matters in Pakistan

Pakistan and India face the same problem from different sides: both import most of their oil, and both have seen fuel and food costs rise this year. Pakistan’s own inflation and interest rate decisions are driven by the same world oil price. India’s numbers show the price shock is regional, not only a Pakistani problem.

For Indian households, a December rate hike would mean costlier home and car loans, but better returns on bank deposits.