India’s retail inflation rate, based on the new Consumer Price Index (CPI) series, was 3.48% in April compared to the same period last year. The highest inflation was seen in silver jewelry, with a 144.34% price surge, and gold jewelry, which increased by 40.72%.
In April, overall food inflation was at 4.2%, with significant price drops in potatoes by 23.69% and onions by 17.67%. However, tomato prices rose by 35.28% during the month. Housing, water, electricity, gas, and other fuels showed a subdued inflation rate of 1.71% in April.
The CPI inflation rate remained steady at 3.4% sequentially in March. The Reserve Bank of India (RBI) projected India’s inflation rate for 2026-27 at 4.6%, citing improved food supply prospects from a strong rabi crop amidst global oil price hikes due to the Iran conflict.
RBI Governor Sanjaya Malhotra highlighted the impact of global energy price increases on select fuels and the comfort provided by a robust rabi crop. The projected CPI inflation for 2026-27 is 4.6%, with quarterly estimates at 4.0%, 4.4%, 5.2%, and 4.7% for Q1 to Q4, respectively.
Persistently high energy prices from the West Asia conflict and potential El Niño conditions pose inflation risks. Core inflation, excluding food and fuel prices, is expected at 4.4% for 2026-27, indicating controlled underlying inflation pressures.
