Food inflation hits 7.74%: Why the next inflation spike could hurt household budgets - BusinessToday

SBI Research expects overall inflation to peak at 6.7%-6.8% in November, although this remains a forecast rather than a confirmed outcome.

Food prices are rising faster than overall inflation, putting pressure on household budgets just as the cost of several everyday essentials continues to climb. India’s food inflation reached 7.74% in September 2026, according to SBI Research, as higher prices of items such as onions, ginger, garlic and lemons pushed up the cost of food. The increase comes as retail inflation rose to 5.54% in September from 4.82% in August, crossing the 5% mark for the first time under the revised consumer price index (CPI) series. Food accounts for a significant part of household spending, particularly for lower-income families. When prices of essential vegetables and other food items rise, families may have to spend more on the same quantity of groceries or reduce purchases of other goods to manage their budgets. Unlike discretionary purchases, many food items are difficult to avoid altogether. Households may respond to higher prices by switching to cheaper alternatives, buying smaller ...