Societe Generale forecasts that India’s headline Consumer Price Index (CPI) inflation will rise to 5.6% year-on-year in September 2026, up from 4.8% in August, according to FX Street. This increase is expected to be driven by broad-based food price shocks and rising energy costs, signaling mounting inflationary pressures in the country.
Additionally, core CPI inflation, which excludes volatile food and energy prices, is projected to approach 4.5%, indicating strengthening underlying inflation trends. Kunal Kundu of Societe Generale highlights these developments as key factors influencing India’s inflation trajectory.
For Japanese investors and markets, the outlook on Indian inflation is particularly relevant given the potential impact on the Indian Rupee and the Reserve Bank of India’s monetary policy decisions, which could influence cross-asset flows and FX volatility in Asia.