India’s retail inflation rises to 5.54% in September

India’s annual retail inflation rose to 5.54% in September from 4.83% in August, as food inflation accelerated to 7.74%, government data showed Monday. September’s rate was the highest in 23 months and the first time inflation had crossed 5% under the current Consumer Price Index series. Food prices rose at a faster pace than the overall index, with food inflation up from 5.97% in August. Onion inflation reached 108.09% year on year, compared with 48.78% the previous month. Garlic inflation rose to 54.62% from 43.60%, while lemon inflation climbed to 36.41% from 15.15%. Some vegetable prices fell: potato prices were down 11.50% year on year and tomato prices declined 8.62%, according to the data. Inflation was higher in rural areas, rising to 6.08% from 5.24%; the urban rate increased to 4.88% from 4.31%. The September increase extended a run of rising annual inflation that began in March, according to the reported figures. The rate stood above the Reserve Bank of India’s 4% medium-term target for a fourth consecutive month, while remaining within its stated tolerance band. Economists offered several explanations for the rise in food prices.