Diwali shopping 2026: CPI inflation crosses 5% in September, may hit 6.8% in November — what item-wise data reveals
With Diwali 2026 approaching, households tend to spend more on groceries, festive clothing, home decor, gifts and other seasonal purchases. How have prices of these items changed over the past year, and which expenses could put additional pressure on festive budgets?
According to the latest data from the Ministry of Statistics and Programme Implementation (MoSPI), CPI retail inflation rose to 5.54% in September 2026, from 4.83% in August 2026.
While prices in several household and festive-shopping categories have risen year on year, some items have recorded a decline in inflation or negative inflation. Here is what consumers should know before planning their 2026 Diwali shopping budget.
What is CPI inflation and how does it affect your shopping budget?
The Consumer Price Index (CPI) measures changes in the prices of goods and services that households regularly buy, including food, beverages, clothing, transport and household products.
For example, if a basket of goods cost ₹1,000 in September 2025 and the same basket cost ₹1,055.40 in September 2026, the prices would have increased by 5.54% over the year.
However, overall CPI inflation does not mean every product has become more expensive at the same rate. The inflation rate for an individual category can be higher or lower than the headline figure.
Which Diwali shopping items have become costlier in September 2026?
The following table compares year-on-year inflation across selected categories relevant to festive shopping.
| Diwali shopping item | CPI category | September 2026 inflation (%) | August 2026 inflation (%) |
| Silver jewellery | Silver jewellery | 87.8 | 107.11 |
| Groceries, cooking ingredients and festive food | Food | 7.74 | 5.97 |
| Kitchen utensils, crockery and dinnerware | Glassware, tableware and household utensils | 5.99 | 5.40 |
| Furniture and home furnishings | Furniture, furnishings and loose carpets | 4.43 | 3.96 |
| New clothes for Diwali | Clothing | 4.25 | 3.93 |
| Home repairs and maintenance before Diwali | Maintenance, repair and security of the dwelling | 4.05 | 3.77 |
| Travel to hometowns or festive destinations | Passenger transport services | 3.75 | 3.39 |
| Home furnishings and décor-related textiles | Household textiles | 3.56 | 3.20 |
| Home appliances and festive-season electronics purchases | Household appliances | 3.26 | 2.52 |
| Household cleaning products and routine maintenance services | Goods and services for routine household maintenance | 2.26 | 2.01 |
| Festive footwear | Footwear | 1.78 | 1.12 |
| Soft drinks, juices and other beverages | Beverages | 0.25 | 0.10 |
| Home and garden tools for pre-festive maintenance | Tools and equipment for house and garden | 0.21 | -0.59 |
| Cars, two-wheelers and other vehicles | Purchase of vehicles | -2.56 | -4.38 |
Source: MoSPI. Note: YoY CPI inflation; selected Diwali shopping items. Consumer item descriptions may differ from official CPI category names.
According to the All-India combined Consumer Price Index (CPI) data, silver jewellery recorded the highest inflation among the listed categories, at 87.8% in September 2026, although this was lower than 107.11% in August 2026. Food inflation rose to 7.74% from 5.97%, potentially adding to household spending on groceries, cooking ingredients and festive meals.
Inflation also increased across several other categories, including household utensils, clothing, furniture, appliances and travel.
However, the silver jewellery inflation figure needs to be interpreted carefully. An inflation rate of 87.8% means prices were, on average, 87.8% higher than in September 2025.
For example, if a comparable item of silver jewellery cost ₹10,000 in September 2025, its price would be approximately ₹18,780 in September 2026, assuming the same item and price basis. This does not mean prices fell between August and September 2026.
At the other end, vehicle prices recorded negative inflation of 2.56% in September. This indicates that the category’s price index was lower than a year earlier.
Could inflation rise further closer to Diwali?
According to SBI Research’s Ecowrap report, India’s retail inflation rose to 5.54% in September 2026, marking its highest reading under the revised CPI series and crossing the 5% mark for the first time.
The rise was driven largely by food inflation, which climbed to 7.74%, with onions, garlic and lemons recording steep price increases. The report expects CPI inflation to peak at 6.7%-6.8% in November 2026.
If inflation rises further, households could face additional pressure on their budgets as Diwali approaches. Food prices are particularly important because groceries and ingredients form a regular part of household spending, alongside seasonal purchases.
Disclaimer: This is purely for educational/informational purposes and should not be taken as any sort of financial advice.
