Retail Inflation Hits 13-Month High in April as Food Prices Rise

India’s retail inflation rose to a more than one-year high of 3.48 per cent in April 2026, up from 3.40 per cent in March, mainly due to rising food prices, according to data released by the Ministry of Statistics and Programme Implementation on Tuesday.

Inflation in rural areas stood higher at 3.74 per cent, compared to 3.16 per cent in urban India. Retail inflation had remained relatively lower earlier this year at 2.74 per cent in January and 3.21 per cent in February.

Food inflation, measured by the Consumer Food Price Index (CFPI), accelerated to 4.20 per cent in April from 3.87 per cent in March, indicating broader price pressures on household consumption. Rural food inflation was recorded at 4.26 per cent, while urban food inflation stood at 4.10 per cent.

Among major food commodities, tomato prices recorded a sharp annual increase of 35.28 per cent in April, followed by cauliflower at 25.58 per cent. However, some vegetables remained in deflation territory. Potato prices declined by 23.69 per cent year-on-year, while onion prices fell by 17.67 per cent. Prices of peas and chickpeas also eased by 6.75 per cent.

Precious metals and jewellery continued to witness exceptionally high inflation. Silver jewellery inflation remained the highest at 144.34 per cent, though marginally lower than March’s 148.42 per cent. Inflation in gold, diamond and platinum jewellery stood at 40.72 per cent, compared to 45.88 per cent in March 2026.

The personal care and miscellaneous goods category recorded inflation of 17.66 per cent, while transport inflation remained almost flat at minus 0.01 per cent.

Retail inflation has now increased for the second consecutive month, moving closer to the Reserve Bank of India’s medium-term target of 4 per cent.

The RBI had projected CPI inflation at 4.6 per cent for 2026-27 and cautioned that rising global energy prices linked to the Middle East conflict, along with possible El Niño conditions, could push inflation higher. Crisil Intelligence has projected retail inflation at 5.1 per cent for the current financial year.

Dharmakirti Joshi, Chief Economist Crisil Ltd said, After 74 days of the West Asia conflict, the upside risks to consumer price index (CPI)-based inflation seem to be materialising at a snail’s pace. That indicates the consumer remains largely protected so far. To be sure, there was impact of the West Asia conflict in some categories such as vegetable oils.

He said, "The West Asia conflict, together with heatwaves and the expectation of El Niño this year, will keep agricultural production and food inflation as key monitorable this fiscal year.

"While the government has restrained the rise in retail fuel inflation so far, the persistent rise in global crude oil prices makes a higher pass-through to domestic cooking and transportation fuel prices an upside risk. Moreover, the sharp rise in the cost of energy and other inputs, as well as trade and transportation costs, is expected to be further passed on by producers to consumers, raising core inflation.

"A depreciating rupee also adds to the cost of imported inputs. Additionally, food inflation is expected to face pressure from disrupted agricultural production due to ongoing heatwaves and a likely below-normal monsoon."