India's Retail Inflation Rises to 3.93% in May, Driven by Food and Fuel Costs
India's consumer price inflation accelerated to 3.93% in May 2026, up from 3.48% in April, according to government data released Friday. The increase was primarily driven by higher food prices, with food inflation reaching 4.78%, while global energy disruptions pushed fuel costs higher. The rate remains below the Reserve Bank of India's 4% target, though the RBI has raised its full-year inflation projection to 5.1% due to mounting input costs.
India's retail inflation, measured by the Consumer Price Index, rose to 3.93% in May 2026 from 3.48% in April, according to data released by the National Statistical Office. Food inflation was the primary driver, climbing to 4.78% from 4.20% in the previous month, with notable price increases in items like tomatoes (48.43%), ginger (32.49%), and precious metal jewellery (155.23% for silver jewellery). Regional variations showed rural inflation at 4.25% and urban inflation at 3.53%. While the headline inflation rate remains below the Reserve Bank of India's 4% target, the RBI recently raised its full-year inflation projection to 5.1% from 4.6%, citing mounting input costs from higher global energy prices. Retail fuel prices have increased cumulatively by 7.4% for petrol and 8.4% for diesel since May, with the RBI estimating a direct impact of approximately 36 basis points on headline inflation.
What different sources said
- NDTVCenter
Retail Inflation 3.93% In May, Up From 3.48% In April
- Times of IndiaCenter
Retail inflation climbs to 3.93% in May as food prices accelerate
- BloombergCenter
India Inflation Accelerates to 3.93%, Stays Below RBI Target
- Moneycontrol.comCenter
Retail inflation accelerates to 3.93% in May, fifth straight monthly rise
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