India’s retail inflation rose to 3.48% in April 2026, reaching a 13-month high as rising prices of food, beverages, housing, clothing, and utilities offset the easing effect of recent inflation moderation, according to provisional data released by the Ministry of Statistics and Programme Implementation (MoSPI).

Key Highlights

• India’s retail inflation climbed to 3.48% in April, marking the highest level in thirteen months.
• Rising energy and food prices pushed inflation upward despite remaining below RBI’s target threshold.

The latest retail inflation print was slightly lower than the 3.8% median estimate projected by economists in a recent market survey but reflects mounting pressure from rising global energy prices linked to the ongoing West Asia geopolitical conflict.

Food and Energy Costs Drive Inflation Higher

Food inflation, a major component of India’s Consumer Price Index (CPI), accelerated to 4.20% in April, up from 3.87% in March, with higher prices of gold and silver jewellery, vegetables including tomatoes and cauliflower, and coconut copra contributing to the surge.

Housing inflation also edged up to 2.15% in April, while transport-related inflation rose as higher crude oil prices impacted logistics and freight costs.

RBI Governor Sanjay Malhotra, after the central bank’s April policy review, had cautioned that external risks remain elevated. "Global supply-side disruptions and crude oil volatility continue to pose inflationary challenges despite temporary relief from domestic supply conditions," he noted.

Also Read: Retail Inflation Rises to 3.40% in March; Food Prices Edge Higher

West Asia Conflict Adds Pressure

The ongoing tensions in West Asia, particularly disruptions linked to oil supply routes, have pushed Brent crude above $100 per barrel over the past two months. This has intensified inflation concerns for India, which remains heavily dependent on imported crude.

Economists believe the fading favourable base effect, which had helped soften inflation in recent months, is now exposing underlying price pressures.

Madan Sabnavis, Chief Economist at Bank of Baroda, recently noted: "Inflation is likely to remain manageable but risks from energy prices and imported inflation require close monitoring."

Regional Inflation Trends

Southern states including Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka reported the highest inflation rates in April, while Delhi, Mizoram, and Chhattisgarh recorded relatively lower inflation.

Personal care and miscellaneous services registered the sharpest inflation impact at 17.66%, reflecting broader cost escalation across discretionary spending categories.