CPI-based inflation surged to eight months high of 7.3 per cent YoY in September compared to 6.7 per cent in August 2020.
The retail inflation breached upper tolerance level of RBI's inflation target for six months in a row.
Both rural and urban inflation remained above 7 per cent mark in September.
Upsurge in inflation has stemmed from higher food inflation driven entirely by vegetable inflation that shot up to 20.7 per cent during the month.