Key Facts

  • Headline retail inflation (CPI): accelerated to 6.09% (rounded to 6.1%) in October 2026.
  • This was the first: breach of the RBI's 2%–6% inflation tolerance corridor in two years.
  • Food prices drove the: uptick at 8.5% (8.94% under CFPI), alongside transport at 5.8% and restaurant meals at 10.1%.
  • Among major Indian states,: Tamil Nadu posted the highest retail inflation at 7.29% (7.3% rounded).

GK Context

  • Monthly CPI figures are: released by the National Statistics Office (NSO) under MoSPI.
  • Under the 2016 Flexible: Inflation Targeting (FIT) regime, the RBI's Monetary Policy Committee targets 4% CPI inflation with a +/- 2% band (2%–6%).
  • Three consecutive quarters outside: the 2%–6% band require the RBI to submit a formal explanatory report to the Union Government.

Static GK

  • RBI MPC: Six-member statutory committee established under Section 45ZB of the RBI Act, 1934 (three RBI members and three government nominees).
  • Current CPI Base Year: 2012 = 100; Consumer Food Price Index (CFPI) holds ~39.06% weight in the combined basket.

Mains Analytical Framework

  • Monetary Trade-off: Sticky food and services inflation constrains the RBI MPC's scope for policy rate easing.
  • Supply Bottlenecks: Seasonal vegetable shocks and transport costs hit southern consumer states like Tamil Nadu harder.
  • Policy Response: Expand cold-chain infrastructure, time buffer-stock interventions (OMSS/PSF), and align fiscal-monetary price management.