India’s Retail Inflation Climbs to 3.48% in April; Rising Food Prices Fuel the Heat

India’s CPI-based retail inflation edged up to 3.48% in April 2026 pushed higher by pricier tomatoes, jewellery, and kitchen staples while the RBI keeps a watchful eye on food-driven price pressures building across the country.

Retail Inflation Ticks Up for the Fourth Month in a Row

India’s retail inflation moved higher again in April 2026 reaching 3.48% year-on-year, up from 3.40% in March. The Ministry of Statistics & Programme Implementation released the data on Tuesday, May 12. This marks four consecutive months of rising inflation a trend economists say deserves close attention. The number still sits well within the Reserve Bank of India’s comfort zone of 2% to 6%, but the steady upward march is hard to ignore.

Food prices were the biggest culprit behind the uptick. Rural India felt the pinch more sharply rural inflation came in at 3.74%, while urban inflation stayed softer at 3.16%.

Food Prices Bite Harder, Tomatoes and Cauliflower Lead the Surge

Food inflation tracked through the All India Consumer Food Price Index (CFPI) rose to 4.20% in April from 3.87% in March. Rural food inflation was 4.26%, slightly edging past urban food inflation of 4.10%.

Among the standout items, tomato prices shot up 35.28% year-on-year a dramatic spike that stung everyday households. Cauliflower prices rose 25.58%. On the other end, potato prices actually fell 23.69% and onion prices dropped 17.67% giving consumers some relief in the vegetable basket.

Coconut and copra prices stayed red-hot at over 44% inflation. Food and beverages as a whole posted 4.01% inflation, while restaurants and accommodation services were up 4.20%.

Jewellery Prices Skyrocket, Silver Leads with a Staggering 144% Jump

Beyond groceries, precious metals told an extraordinary story. Silver jewellery prices surged a jaw-dropping 144.34% year-on-year. Gold, diamond, and platinum jewellery prices rose 40.72% reflecting strong global demand and elevated commodity prices.

Personal care and miscellaneous goods inflation also stayed elevated at 17.66% a category that keeps climbing. Education services inflation stood at 3.15%. Housing inflation inched up slightly to 2.15% in April from 2.11% in March, with rural housing inflation at 2.65% and urban at 1.96%.

Transport inflation was almost flat at -0.01%, offering a small cushion amid rising global crude oil prices.

Telangana Tops the Chart, Delhi and Chhattisgarh Stay Cooler

Among major states with populations above 5 million, Telangana posted the highest combined inflation a scorching 5.81% holding its position as the most inflation-hit state in the country. Puducherry followed at 4.41%. Tamil Nadu and Andhra Pradesh also recorded inflation above 4%.

Delhi, by contrast, remained among the calmer spots reporting 1.96% inflation. Chhattisgarh posted the lowest reading at just 1.77%. At the other extreme, Mizoram registered the lowest inflation nationally at 0.69%.

RBI Watches Closely FY27 Inflation Forecast Set at 4.6%

The Reserve Bank of India, in its April 2026 monetary policy review, noted that headline inflation has stayed largely below its medium-term target thanks to softer food prices and stable core inflation. However, it flagged a gradual upward movement as a concern.

The RBI has projected CPI inflation for FY27 at 4.6% with 4% in Q1, rising to 4.4% in Q2, peaking at 5.2% in Q3, and moderating to 4.7% in Q4. The central bank also warned of upside risks including persistently high energy prices linked to the West Asia conflict and the possibility of an El Niño event that could disrupt India’s southwest monsoon.

India has formally retained its inflation target at 4% with a tolerance band of 2% to 6% for the five-year period from April 2026 to March 2031.

The next CPI data release, for May 2026, is scheduled for June 12, 2026.