Industry leaders noted that the slight increase in inflation in April indicates stable pricing in core consumption areas, especially in transport. However, there are persistent food price pressures in certain commodities, underscoring the need for continued monitoring of the supply side, according to PHDCCI. Transport inflation has remained low, with no retail pump price hikes by the government despite high Brent crude oil prices globally. India’s retail inflation in April was 3.48 percent year-on-year, as per initial estimates.
Food inflation saw a rise to 4.20 percent from 3.87 percent in March 2026. Rural food inflation at 4.26 percent surpassed urban food inflation at 4.10 percent. Precious metal prices experienced higher inflation rates due to international price hikes and the INR depreciation against the US dollar, mentioned Juneja. On the other hand, in April, potatoes, onions, motor cars, peas, chickpeas, and air conditioners had the lowest inflation rates at the food item level.
Dr. Ranjeet Mehta of PHDCCI highlighted the divergence between food and non-food inflation trends in India, affecting the inflation outlook. Volatility in agricultural commodities and precious metals may impact household inflation expectations in the short term. Core inflation remains contained at 3.3 percent, with housing, health, household goods, and various non-food categories showing moderate price increases. Sharan from Brickwork Ratings emphasized that while inflation is manageable, the monsoon’s impact on vegetable and cereal supplies will be crucial in sustaining the current inflation trend or facing renewed price pressures.
