India’s retail inflation accelerated to a 13-month high of 3.48% in April 2026, driven primarily by a sharp uptick in food prices and the rising costs of dining out. According to the latest data from the National Statistics Office (NSO), the Consumer Price Index (CPI) rose marginally from 3.40% in March, marking a steady upward trend despite remaining within the Reserve Bank of India’s comfort zone of 4%. The increase was most pronounced in the food sector, where inflation jumped to 4.20%, fueled by skyrocketing prices for staples like tomatoes—which saw a staggering 35.28% year-on-year increase—and cauliflower. Additionally, the services sector felt the heat as restaurant and accommodation costs climbed, reflecting higher input expenses and robust demand. Rural areas experienced a slightly higher inflationary pressure at 3.74% compared to 3.16% in urban centers, highlighting a divergent price landscape across the country.
While food and services pushed the headline number higher, a significant deflation in other essential vegetables provided a necessary cushion for households. Potato and onion prices continued their downward trajectory, recording double-digit deflation of 23.69% and 17.67% respectively, which helped prevent a more aggressive spike in the overall index. However, non-food categories like personal care and jewellery added unexpected pressure, with silver and gold prices surging due to global market volatility. Housing inflation remained relatively stable at 2.15%, while transport costs stayed largely flat, aided by the government’s decision to maintain steady fuel rates despite fluctuating international crude prices. Economists suggest that while the current inflation rate remains manageable, persistent risks from the ongoing West Asia conflict and potential weather disruptions to the upcoming monsoon season necessitate a cautious approach from policymakers to ensure long-term price stability.
