Retail inflation in India, as measured by the Consumer Price Index (CPI), increased to 3.93% in May 2026, up from 3.48% in April, according to government data released on Friday. The rise indicates a modest uptick in price pressures across the economy.
Food Inflation Trends
The Consumer Food Price Index (CFPI)-based inflation also rose during the month, reaching 4.78% compared to 4.20% in April. Rural areas experienced food inflation of 4.85%, while urban areas recorded 4.66%.
Regional and Sectoral Breakdown
Overall CPI inflation stood at 4.25% in rural regions and 3.53% in urban regions during May. Housing inflation was recorded at 2.12% nationally, with rural housing inflation at 2.73% and urban housing inflation at 1.91%.
Among key commodities, silver jewellery witnessed the highest inflation rate at 155.23% in May, up from 144.36% in April. Tomato prices surged with inflation accelerating to 48.43% from 35.26%, while gold, diamond, and platinum jewellery collectively saw inflation of 40.93%. Ginger inflation rose sharply to 32.49% from 14.36% in April, and raisins (kishmish) and monacca recorded inflation of 21.97%.
On the other hand, some items experienced deflation. Potato prices remained significantly lower than a year ago, with inflation at (-)23.71%. Peas recorded deflation of (-)11.47%, while motor cars and jeeps saw prices drop by (-)7.19%. Cumin (jeera) and motorcycles and scooters registered deflation rates of (-)4.59% and (-)3.56%, respectively.
Data Collection and Future Release
The National Statistical Office (NSO) collected price data from 1,407 urban markets, including online markets, and 1,465 villages across states and Union Territories. The response rate was 100% in both rural and urban markets during May. The next CPI inflation data for June 2026 is scheduled for release on July 13.
