THEBUSINESSBYTES
BUREAU
NEW
DELHI, JUNE 12, 2026
India’s retail
inflation accelerated to 3.93 per cent in May 2026 from 3.48 per cent in April,
driven largely by a rise in food prices, according to provisional data released
by the Ministry of Statistics and Programme Implementation (MoSPI) on Friday.
The Consumer Price
Index (CPI)-based inflation remained within the Reserve Bank of India’s
tolerance band but reflected mounting price pressures across several essential
categories. The all-India CPI (Combined) index stood at 105.91 during the
month.
Inflation in rural
India was recorded at 4.25 per cent, higher than the 3.53 per cent registered
in urban areas, indicating that households in villages continued to face
stronger price pressures. Food inflation, measured by the Consumer Food Price
Index (CFPI), rose to 4.78 per cent in May from 4.20 per cent in April. Rural
food inflation stood at 4.85 per cent, while urban food inflation was estimated
at 4.66 per cent.
Among major
expenditure groups, food and beverages inflation was recorded at 4.55 per cent,
while restaurants and accommodation services witnessed inflation of 5.75 per
cent. Personal care, social protection and miscellaneous goods and services
emerged as the highest inflationary segment, registering a sharp 18.46 per cent
increase year-on-year.
Education services
recorded inflation of 2.99 per cent, while healthcare inflation remained
relatively subdued at 1.49 per cent. Housing inflation was estimated at 2.12
per cent, with rural and urban housing inflation at 2.73 per cent and 1.91 per
cent, respectively.
Commodity-wise,
silver jewellery registered the steepest inflation at 155.23 per cent,
reflecting a surge in precious metal prices. Tomato prices rose by 48.43 per
cent, while gold, diamond and platinum jewellery recorded inflation of 40.93
per cent. Other items witnessing notable price increases included ginger at
32.49 per cent and raisins and monacca at 21.97 per cent.
In contrast, several
products remained in deflation territory. Potato prices declined by 23.71 per
cent, while peas registered a fall of 11.47 per cent. Motor cars and jeeps,
cumin (jeera), and motorcycles and scooters also recorded negative inflation
during the month.
Among states and
Union Territories with populations exceeding 50 lakh, Telangana reported the
highest combined inflation rate at 6.15 per cent, followed by Tamil Nadu at
5.11 per cent, Puducherry at 5.00 per cent and Andhra Pradesh at 4.90 per cent.
The National
Statistical Office (NSO) said price data was collected from 1,407 urban
markets, including online platforms, and 1,465 villages across the country. The
response rate remained at 100 per cent in both rural and urban sectors,
ensuring comprehensive coverage for the inflation assessment.
The Ministry added
that CPI data for June 2026 will be released on July 13, providing the next key
indicator of the country’s inflation trajectory amid evolving food and
commodity price trends.
