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Topic 192 · Economy, Budget & Banking

CPI inflation rises to 5.54%

10 MCQs · tap an option to check it · All answers

Revise the 12 points first Book 1 RATNA
  1. Core Trigger: MoSPI's provisional data of 12 October 2026 showed September retail inflation at 5.54%, up from 4.83% in August.
  2. Headline Mark: It is the highest reading since October 2024, and the fourth straight month above the RBI's 4% target.
  3. Releasing Body: MoSPI's National Statistical Office releases CPI figures on the 12th of each month.
  4. Food Inflation: Food (CFPI) inflation was 7.74% in September 2026.
  5. Rural-Urban: Rural inflation was 6.08% and urban inflation 4.88%.
  6. Tolerance Band: The reading moves closer to the 6% upper tolerance limit around the 4% target.
  7. India Link: The RBI had already raised the repo rate to 5.50% on 7 October 2026.
  8. Headquarters: MoSPI is located in Sardar Patel Bhawan, New Delhi.
  9. Founded: The flexible inflation targeting framework was adopted in 2016 by amending the RBI Act, 1934.
  10. Landmark: The Monetary Policy Framework Agreement of 20 February 2015 between the Government and RBI set the 4% target.
  11. Statute: Section 45ZA of the RBI Act lets the Centre notify the target; section 45ZN covers failure after three consecutive quarters outside the band.
  12. Definition: Headline inflation is the year-on-year change in the all-India Consumer Price Index measuring a fixed basket of retail prices.
Question 1 of 10

September 2026 retail inflation of 5.54% was up from what level in August?

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Answer: (C) 4.83%

Core Trigger: MoSPI's provisional data of 12 October 2026 showed September retail inflation at 5.54%, up from 4.83% in August.From Book 1 RATNA, topic 192, point 1

Question 2 of 10

The 5.54% reading is the highest since which month?

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Answer: (B) October 2024

Headline Mark: It is the highest reading since October 2024, and the fourth straight month above the RBI's 4% target.From Book 1 RATNA, topic 192, point 2

Question 3 of 10

MoSPI's National Statistical Office releases CPI figures on which day of each month?

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Answer: (B) The 12th

Releasing Body: MoSPI's National Statistical Office releases CPI figures on the 12th of each month.From Book 1 RATNA, topic 192, point 3

Question 4 of 10

What was Food (CFPI) inflation in September 2026?

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Answer: (D) 7.74%

Food Inflation: Food (CFPI) inflation was 7.74% in September 2026.From Book 1 RATNA, topic 192, point 4

Question 5 of 10

What was rural inflation in September 2026?

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Answer: (C) 6.08%

Rural-Urban: Rural inflation was 6.08% and urban inflation 4.88%.From Book 1 RATNA, topic 192, point 5

Question 6 of 10

What is the upper tolerance limit around the RBI's 4% target?

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Answer: (B) 6%

Tolerance Band: The reading moves closer to the 6% upper tolerance limit around the 4% target.From Book 1 RATNA, topic 192, point 6

Question 7 of 10

MoSPI is located in which building in New Delhi?

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Answer: (A) Sardar Patel Bhawan

Headquarters: MoSPI is located in Sardar Patel Bhawan, New Delhi.From Book 1 RATNA, topic 192, point 8

Question 8 of 10

The Monetary Policy Framework Agreement setting the 4% target is dated which day?

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Answer: (B) 20 February 2015

Founded: The flexible inflation targeting framework was adopted in 2016 by amending the RBI Act, 1934.From Book 1 RATNA, topic 192, point 9

Question 9 of 10

The flexible inflation targeting framework was adopted in 2016 by amending which Act?

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Answer: (D) RBI Act, 1934

Landmark: The Monetary Policy Framework Agreement of 20 February 2015 between the Government and RBI set the 4% target.From Book 1 RATNA, topic 192, point 10

Question 10 of 10

Consider: 1. Section 45ZA lets the RBI notify the target. 2. Section 45ZN covers failure after three consecutive quarters outside the band. Which is/are correct?

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Answer: (B) Only 2

Statute: Section 45ZA of the RBI Act lets the Centre notify the target; section 45ZN covers failure after three consecutive quarters outside the band.From Book 1 RATNA, topic 192, point 11

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