By Ashutosh Joshi, PGDM (Finance), B.Com · Page last reviewed:
Retail inflation was 5.54% in September 2026 (provisional, MoSPI, base 2024=100), released on 12 Oct 2026. Any savings earning less than that after tax are losing buying power. The next release is due on 12 Nov 2026.
Key Highlights
- Retail inflation was 5.54% in September 2026 (provisional), up from 4.83% in August.
- Rural inflation (6.08%) ran above urban (4.88%).
- Inflation has risen every month in 2026, from 2.74% in January.
- The data uses MoSPI’s new CPI series, base 2024=100. Next release: 12 November 2026.
CPI inflation is the year-on-year change in the Consumer Price Index, published monthly by MoSPI. The RBI targets 4% CPI inflation. See the repo rate page
Plan against inflation
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Your next questions, answered
Is my FD beating inflation?
A 7% FD gives 4.82% after tax in the 30% slab, a real return of -0.69% against 5.54% CPI. In the 20% slab: 0.00%. So for top-slab taxpayers, no.
What does 6% inflation do to my money?
₹1 lakh of expenses today becomes ₹1.79 lakh in 10 years and ₹3.21 lakh in 20 years.
Which safe options beat inflation?
Against 5.54%: PPF 7.1% tax-free (real 1.48%), SSY 8.2% (real 2.52%), EPF 8.25% (real 2.57%).
Diving Finance view: expert take by Ashutosh Joshi
- I plan with 6% long-run inflation, not the latest month’s figure.
- Keep your emergency fund in FDs even though they barely beat inflation after tax. Use equity SIPs (plan for 10–12%) to grow long-term wealth.
This is general guidance, not personal advice. Check your own goals, tax slab and risk appetite.
How it compares after tax and inflation
| Option | Post-tax return (30% slab) | Real vs 5.54% CPI | Real vs 6% |
|---|---|---|---|
| Bank FD 7% (illustrative) | 4.82% | -0.69% | -1.12% |
| PPF 7.1% | 7.10% | 1.48% | 1.04% |
| SSY 8.2% | 8.20% | 2.52% | 2.08% |
| EPF 8.25% | 8.25% | 2.57% | 2.12% |
| SCSS 8.2% | 5.64% | 0.10% | -0.34% |
| KVP 7.5% | 5.16% | -0.36% | -0.79% |
Assumptions in the comparisons: income-tax slabs of 30% and 20% plus 4% cess (31.2% and 20.8%), an illustrative bank FD at 7%, long-run inflation of 6% and equity SIP returns of 10–12%, as used by our author. These are planning assumptions, not forecasts.
Worked example
At 5.54% inflation, something that cost ₹1,00,000 a year ago costs about ₹1,05,540 now. An FD at 7% gives a real return of about 1.38% before tax (1.07 ÷ 1.0554 − 1).
Monthly CPI inflation, 2026 (base 2024=100)
| Month | Combined | Rural | Urban |
|---|---|---|---|
| Sep 2026 (P) | 5.54% | 6.08% | 4.88% |
| Aug 2026 | 4.83% | 5.24% | 4.31% |
| Jul 2026 | 4.45% | 4.84% | 3.96% |
| Jun 2026 | 4.38% | 4.74% | 3.93% |
| May 2026 | 3.93% | 4.25% | 3.53% |
| Apr 2026 | 3.48% | 3.74% | 3.16% |
| Mar 2026 | 3.40% | 3.63% | 3.11% |
| Feb 2026 | 3.21% | 3.37% | 3.02% |
| Jan 2026 | 2.74% | 2.73% | 2.75% |
Chart
Base year change: read this before comparing
MoSPI moved CPI to a new base year, 2024=100, and the monthly figures on this page (from January 2026) are on that base. Earlier CPI figures were published on the old 2012=100 series, which has a different basket and weights. Not published by source as one linked series on this page: we have not yet added the old-series months, and we will not mix the two series without MoSPI’s official linking factor.
Source: DivingFinance, CPI Inflation India: Latest Rate (Sep 2026) & Monthly History, https://divingfinance.com/rates/cpi-inflation-india/ (data: MoSPI; updated 21 Oct 2026)FAQs
What is India's CPI inflation now?
5.54% for September 2026 (provisional), per MoSPI.
When is the next CPI release?
12 November 2026, for October data.
What is the new CPI base year?
2024=100. The earlier series used 2012=100.
Why is rural inflation higher?
In September 2026 rural CPI rose 6.08% against 4.88% urban, as reported by MoSPI.
Is my FD beating inflation?
A 7% FD gives 4.82% after tax in the 30% slab, a real return of -0.69% against 5.54% CPI. In the 20% slab: 0.00%. So for top-slab taxpayers, no.
What does 6% inflation do to my money?
₹1 lakh of expenses today becomes ₹1.79 lakh in 10 years and ₹3.21 lakh in 20 years.
Which safe options beat inflation?
Against 5.54%: PPF 7.1% tax-free (real 1.48%), SSY 8.2% (real 2.52%), EPF 8.25% (real 2.57%).
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Change log
- 21 Oct 2026 – Page created with Jan–Sep 2026 data on base 2024=100.
How we collect this data
Data comes from MoSPI’s monthly CPI press releases. We show only the new 2024-base series and label the base change. Examples are our own calculations. Read our editorial policy and how we calculate. For information only, not investment advice.