The fight against inflation gets tougher: What it means for you

Retail inflation in India rose to 5.54% in September, the highest level in nearly two years, driven by rising food, fuel and transport costs. Rural households were particularly hard hit, with food inflation exceeding 8%. The rise comes amid increased global oil prices, a weakening rupee and continued uncertainty in West Asia. With inflation nearing the RBI’s upper tolerance limit, questions are mounting whether another rate hike could be on the horizon. This explainer explores what drives inflation, why food prices are rising and what this could mean for consumers, investors and the wider economy.