New Delhi, Oct. 12 -- India's retail inflation rose to 5.54 per cent in September from 4.83 per cent in August, moving closer to the Reserve Bank of India's (RBI) upper inflation tolerance limit of 6 per cent, as food inflation surged to 7.74 per cent, prompting economists to warn of further price pressures and the possibility of another interest rate hike.

The Consumer Price Index (CPI)-based inflation increased by 0.71 percentage points in September, while food inflation rose by 1.77 percentage points from the previous month, according to data released by the Ministry of Statistics and Programme Implementation on Monday.

The RBI's inflation target band is 2-6 per cent, with a medium-term target of 4 per cent. September's retail inflat...