Big shock to the common man, retail inflation reached 3.93% in May; Rising prices of petrol and diesel spoiled the game

Retail Inflation Rate In May 2025: There is a big shock for the general public of the country on the inflation front. In fact, retail inflation has increased rapidly in May 2026. According to data released by the government on Friday, India’s retail inflation increased to 3.93 percent in the month of May, which was recorded at 3.49 percent in April. The main reason for the increase in retail inflation is the rising prices of food and fuel. This figure remained close to the medium-term inflation target of the Reserve Bank of India.

May’s inflation rate is the highest recorded under the Revised Consumer Price Index series launched in January this year. The new series uses an updated basket of goods and a new base year to measure price changes.

Food prices continue to rise

Food inflation continued to rise in May also. It increased from 4.20% in April to 4.78%, which shows that food prices are rising faster than a month ago. This increase has happened when the inflation of food items was very low last year.

Impact of rising prices of petrol and diesel

Amidst the long-running crisis in Media East Petrol-Diesel prices Also helped in increasing inflation. Government oil companies increased the prices of petrol and diesel four times in May, due to which transportation costs increased. Due to this, transport inflation increased to 1.75% in May, whereas it had declined by 0.01% in April. This increase reflects the impact of rising fuel prices on consumers.

Expert opinion on retail inflation rate

Kotak Mahindra Bank Chief Economist Upasana Bhardwaj said headline and core inflation below 4% points to a comfortable trend soon. However, softening of crude oil prices and a halt to the weakening rupee are a supportive sign. We are keeping an eye on the impact of poor monsoon on food inflation. As of now, we are expecting a 50 bps rate hike from October.

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RBI increased inflation estimates

Concerns about high crude oil prices and weak monsoon have increased inflation concerns. in reply to reserve Bank of India Has increased the inflation estimate for the current financial year from 4.6% to 5.1%. The Central Bank has also pointed to risks for the rupee and the country’s current account deficit as the economy is under pressure due to high oil prices.