Retail inflation accelerates to 13-month in April at 3.48%

India’s retail inflation for April is recorded at 3.48% on an year on year basis while the food inflation, based on Consumer Food Price Index, in April, 2026 is at 4.20%, as per the government data.

India’s retail inflation accelerated to a 13-month high moving closer to the Reserve Bank of India’s (RBI) medium-term target of 4%.

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Retail food inflation rose to 4.20% in April from 3.87% in March, with rural inflation accelerating faster than urban areas.

Vegetable prices remained mixed with the Potato inflation stayed sharply negative at -23.69%, while onion prices declined 17.67% year-on-year. Tomato prices surged 35.28% in April.

Personal care and miscellaneous goods recorded the highest inflation at 17.66%, while transport inflation remained largely flat at -0.01%, reflecting softer fuel-linked costs despite rising global crude prices.

The Reserve Bank of India (RBI) had projected the CPI inflation for 2026-27 at 4.6%. RBI said that persistently elevated energy prices due to the West Asia conflict and possible El Niño conditions pose upside risks to inflation.

India’s energy prices remain another source of risk as the crude oil basket averaged around $105 per barrel in May, after touching $114 per barrel in April, well above the estimated FY26 average of about $77 per barrel.

The year-on-year Housing inflation rate for the month of April is recorded at 2.15% (Provisional) and the corresponding inflation rates for rural and urban are 2.65% and 1.96%, respectively.

“Among major commodity groups, transport inflation remained subdued at near-zero levels as Government of India has not increased retail pump prices despite Brent crude oil prices remaining above US$ 100 per barrel in the international markets since the East Asia Crisis” said Rajeev Juneja, President, PHDCCI.

However, precious metal prices recorded comparatively higher inflation rates due to jump in international metal prices and depreciating INR vis-à-vis US dollar, he added. Silver, Gold/Diamond/Platinum Jewellery jumped (y-o-y) 144.34% and 40.72% respectively.