India's retail inflation climbs to 3.93% in May as food prices heat up

India's retail inflation accelerated to 3.93% in May 2026, up from 3.48% in April, driven largely by a rise in food prices, according to the latest Consumer Price Index (CPI) data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday. 

The year-on-year inflation rate based on the All India Consumer Price Index (CPI) stood at 3.93% (provisional) in May, with rural inflation at 4.25% and urban inflation at 3.53%. The corresponding figures for April were 3.74% for rural areas, 3.16% for urban centres and 3.48% overall. 

Food inflation, measured by the Consumer Food Price Index (CFPI), also edged higher during the month. The all-India food inflation rate came in at 4.78% in May compared with 4.20% in April. Rural food inflation was recorded at 4.85%, while urban food inflation stood at 4.66%. 

The official data showed that the overall CPI index rose to 105.91 in May from 105.12 in April, while the food price index increased to 105.35 from 104.39 over the same period. 

Food & personal care segments key drivers 

Among the broad consumption categories, food and beverages registered inflation of 4.55%, while restaurants and accommodation services recorded inflation of 5.75%. The sharpest increase, however, was seen in the personal care, social protection and miscellaneous goods and services category, where inflation touched 18.46%. 

Housing inflation remained relatively subdued. The year-on-year housing inflation rate for May was estimated at 2.12%, with rural housing inflation at 2.73% and urban housing inflation at 1.91%. 

A closer look at the item-wise data highlights significant divergences across commodities. Silver jewellery emerged as the item with the highest inflation, registering a staggering 155.23% annual increase in May, up from 144.36% in April. It was followed by tomatoes, where inflation surged to 48.43%, and gold, diamond and platinum jewellery, which recorded inflation of 40.93%. Prices of ginger and raisins (kishmish and monacca) also remained elevated, with inflation rates of 32.49% and 21.97%, respectively. 

On the other hand, several commodities continued to witness deflation. Potato prices remained sharply lower, with inflation at -23.71%, while peas recorded -11.47% inflation. Prices of motor cars and jeeps, cumin (jeera) and motorcycles and scooters also remained below year-ago levels. 

State-wise inflation trends 

Among states and Union Territories with populations above 50 lakh, Telangana recorded the highest combined inflation rate at 6.15% in May. It was followed by Tamil Nadu at 5.11%, Puducherry at 5.00%, and Andhra Pradesh at 4.90%. Uttar Pradesh, the country's most populous state, reported combined inflation of 3.97%, marginally above the national average. 

The CPI data also showed that inflation in Delhi remained relatively contained at 2.50%, while states such as Mizoram and Tripura recorded among the lowest inflation rates at 1.03% and 2.02%, respectively. 

According to the ministry, price data for the index was collected from 1,407 urban markets, including online markets, and 1,465 villages, with a 100% response rate in both rural and urban areas during May. The next CPI release, for June 2026, is scheduled for 13 July 2026.

Radhika Rao, Senior Economist & Executive Director at DBS Bank said, “May inflation came in slightly below consensus. Contribution from the food segments likely rose on perishables (including vegetables), edible oils, cereals, pulses, milk and related categories, not helped by heatwave conditions in some parts of the country. Concurrently pump fuel prices were increased in a staggered fashion since mid-May, besides higher CNG and commercial LPG (this month), imparting first and second derivative impact through the coming months.”  

“While a build-up in price pressures is being watched closely against the backdrop of the ongoing West Asia conflict, India’s inflation is at still below the mid-range of the 2-6% target, and thereby less of an immediate policy concern. This is consistent with the central bank’s view that current inflation readings remain manageable. However, policymakers continue to closely monitor upcoming inflation prints as higher input costs gradually filter through from downstream industries to consumers, weather-related risks unfold, and the progress of the monsoon season becomes clearer,” Rao added.