India’s Retail Inflation Accelerates to 3.48% in April as Food and Energy Costs Climb
India's annual retail inflation, based on the Consumer Price Index (CPI), accelerated to 3.48% in April 2026. This is the highest reading since December, driven primarily by a surge in food prices and volatile energy markets. While the headline figure remains below the RBI's 4% target, the sequential rise from 3.40% in March signals persistent price pressures in the kitchen.
- Republic Business
- 2 min read
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India's annual retail inflation, based on the Consumer Price Index (CPI), accelerated to 3.48% in April 2026. This is the highest reading since December, driven primarily by a surge in food prices and volatile energy markets. While the headline figure remains below the RBI's 4% target, the sequential rise from 3.40% in March signals persistent price pressures in the kitchen.
The rural food inflation stood at a higher 4.26%, while urban food inflation stood at 4.10%. In the vegetable market, price volatility remained extreme; Tomato inflation stood at 35.28% and Cauliflower stood at 25.58%, ensuring that basic essentials remain expensive for the average consumer.
Jewellery and Personal Care Reach Record Levels
The "Personal Care and Social Protection" division saw the most aggressive price hikes, with inflation in this category standing at a staggering 17.66%. This was primarily driven by record-high prices in the precious metals sector. Silver jewellery inflation stood at 144.34%, while Gold, Diamond, and Platinum jewellery inflation stood at 40.72%. Additionally, Coconut and Copra prices stood at 44.55% inflation, further bloating the personal care index.
Declines in Onions, Potatoes, and Luxury Goods
Despite the overall rise, there were significant breathers in specific categories. Potato inflation declined by 23.69% and Onion inflation declined by 17.6%, providing some relief to the vegetable basket. In the non-food segment, inflation for Motor cars and jeeps declined by 7.12%, while Air conditioner prices declined by 5.06%. Peas and chickpeas also saw a dip, as their inflation rate declined by 6.75%.
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Stability in Health, Housing, and Education
Other key sectors showed moderate but steady pressure. Health inflation stood at 4.01%, while Education services stood at 3.15%. The Housing division inflation stood at 2.15%, and Clothing and Footwear inflation stood at 2.80%. The transport sector, despite global oil volatility, saw Transport inflation stood at 1.61%, as the government continues to manage domestic fuel pricing through fiscal buffers.