India CPI Inflation In May: Retail Inflation Jumps to 3.93% In May; Food Inflation Near 4.78%

CPI Inflation Data in May: The Consumer Price Index (CPI) inflation, also known as retail inflation, jumped to 3.93% in May, as per the Ministry of Statistics Programme and Implementation (MoSPI) data released on Friday, June 12. Food inflation came in at 4.78% in May.

The uptick in inflation was fuelled by the LPG supply shortage concerns due to the West Asia crisis. The crude oil price rally is also likely to have an impact on India's retail inflation. The housing inflation for the month of May stood at 2.12%, and the corresponding inflation rates for rural and urban stood at 2.73% and 1.91%, respectively.

The latest CPI inflation data for May can't be compared with the year-ago period due to the reset of the Consumer Price Index (CPI) basket in January. India adopted a new series for measuring CPI inflation from January 2026 with 2024 as the base year. India's retail inflation came at 3.21% in February and 3.4% in March and 3.48% in April.

Top 5 Items With Low and High Inflation

Silver jewellery, tomato, gold/diamond/platinum jewellery, ginger, raisin, kishmish and monacca remained among top five items with high inflation at All India combined level in May. Potato, peas, motor car and jeep, Cumin (Jeera), motor cycle and scooter, are among the top five items with low inflation in May, as per MoSPI's provisional data.

Food Inflation Jumps Due to Pressure From Perishables, Core Inflation Remains Contained

While the overall retail inflation remained firm, food inflation saw a sharp uptick due to pressure from perishable items like tomatoes, ginger and other vegetables. "India's May 2026 CPI inflation print of 3.93% is broadly in line with expectations, but the rise in food inflation to 4.78% underscores persistent price pressures in perishables, particularly tomatoes, ginger and other vegetables. Core inflation remained contained at around 3.7%, indicating that the rise is still being driven more by food and imported energy costs than by broad-based demand pressures," stated Rajeev Sharan, Head of Research, Brickwork Ratings.

Iran-US War Led Crude Price Rally, Energy Supply Concern

The escalating West Asia crisis, driven by the US-Israel conflict with Iran, disrupted global oil trade. The resulting surge in crude oil prices and concerns over the supply of LPG, diesel, and petrol may have added to inflationary pressures on the Indian economy in May.

"Geopolitical tensions and higher crude oil prices likely added to transport, logistics and input costs, while moderation in several other categories helped prevent a sharper spike. Overall, May's print reflects a gentle re acceleration in inflation, shaped by both weather related food volatility and imported cost pressures, even as core categories continue to provide an anchor," Sharan added.

CPI Inflation In April

India's retail inflation based on the Consumer Price Index (CPI) rose marginally to 3.48 per cent in April 2026 from 3.40% in March, according to data released by the Ministry of Statistics and Programme Implementation (MoSPI). The inflation rate remained below the Reserve Bank of India's medium-term target of 4 per cent. Rural inflation stood at 3.74 per cent, while urban inflation was recorded at 3.16% during the month.

Food inflation, measured by the Consumer Food Price Index (CFPI), increased to 4.20% in April from 3.87 per cent in March. Rural food inflation was recorded at 4.26%, while urban food inflation stood at 4.10%.

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