New Delhi: India’s retail inflation moved up to a more than one-year high of 3.48 per cent in April, driven largely by rising food prices and increasing costs of household essentials, according to official data released by the Ministry of Statistics and Program Implementation on Monday.
The latest Consumer Price Index (CPI)-based inflation figure marks a rise from 3.40 per cent recorded in March and signals the second consecutive monthly increase in retail inflation.
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Food Inflation Registers Sharp Increase
Food inflation also accelerated during the month. The Consumer Food Price Index (CFPI) rose to 4.20 per cent in April compared to 3.87 per cent in March.
Among major food items, tomato prices witnessed a sharp year-on-year rise of 35.28 per cent. However, some relief continued in vegetables such as potatoes and onions, which remained in deflation territory.
Potato prices declined by 23.69 per cent, while onion prices fell 17.67 per cent compared to the same period last year. The rise in food inflation reflects increasing pressure on household spending, especially in essential consumption categories.
Rural Inflation Higher Than Urban Areas
The data showed that inflation remained higher in rural India than in urban regions. Retail inflation in rural areas stood at 3.74 per cent in April, while urban inflation was recorded at 3.16 per cent.
Economists often track the rural-urban inflation gap closely, as food and fuel costs tend to impact rural households more significantly.
Precious Metals And Personal Care Costs Surge
Among non-food categories, precious metals and jewelery continued to record elevated inflation levels.
Silver jewelery inflation stood at 144.34 per cent in April, although it eased slightly from 148.42 per cent in March. Inflation in gold, diamond and platinum jewelery was recorded at 40.72 per cent.
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The personal care and miscellaneous goods segment saw one of the steepest increases, with inflation touching 17.66 per cent. Meanwhile, transport inflation remained nearly unchanged at minus 0.01 per cent.
RBI Monitoring Inflation Risks
The Reserve Bank of India has projected CPI inflation for the financial year 2026-27 at 4.6 per cent.
The central bank has also warned that rising global energy prices linked to tensions in the Middle East and possible weather disruptions caused by El Niño conditions could pose upside risks to inflation in the coming months.
With retail inflation now inching closer to the RBI’s medium-term target of 4 per cent, policymakers are expected to closely monitor food and fuel price movements ahead of the monsoon season.
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