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Retail inflation, arsenic measured by the Consumer Price Index (CPI), accrued to 3.9% successful May arsenic nutrient prices rose, according to information from the Ministry of Statistics and Programme Implementation (MoSPI) released connected Friday (June 12, 2026). The ostentation complaint was 3.5% successful April.
Retail prices moved astatine the fastest gait since January 2025, erstwhile the scale accrued 4.06%, making the May fig the highest successful 16 months.
The header numbers had reduced since October 2024, erstwhile the ostentation was implicit 6%. By October 2025, it had astir stagnated. From November 2025, retail ostentation started rising owed to the debased basal and now, it is conscionable 0.07% abbreviated of the Reserve Bank of India (RBI)’s people ostentation complaint of 4%.
The higher people was observed some successful header and halfway inflation. The second excessively accrued to 3.73% marking 3 consecutive months of quickening terms rise. While header ostentation covers each goods and services, halfway ostentation is calculated without considering food, substance and energy prices.
The summation successful retail ostentation tin beryllium mostly attributed to the emergence successful nutrient prices, with the Consumer Food Price Index (CFPI) ostentation astatine 4.8% successful May 2026, inching up from 4.2% successful the erstwhile month.
Several nutrient staples experienced a faster complaint of ostentation oregon slowing complaint of deflation. Cereal prices accrued 0.28% entering the affirmative territory for the archetypal clip since January 2026. Most of the summation came from rice, prices of which accrued 0.23% aft staying successful deflation territory since the opening of the calendar year.
Among room staples, herb prices accrued 48.4% successful May 2026, from 35.3% a period before, breaking a four-month inclination of slowing inflation. Deflation of bulb prices slowed to 2.2% successful the reporting period from 17.7% successful April 2026. Potato prices did not amusement immoderate large signs of increase, and continued to deflate astatine 23% for the 2nd consecutive month.
“The monsoon is already delayed and the proposal fixed to farmers was to hold for the rains to get earlier sowing their seeds for the applicable crops,” said Madan Sabnavis, Chief Economist astatine the Bank of Baroda.
Housing, water, electricity, state and different fuels ostentation — the 2nd largest radical of items constituting 17.6% of the retail handbasket — quickened to 1.73% successful May 2026, from 1.71% a period before. LPG and different categories slowed for the 3rd consecutive period to 2.02% from much than 5% successful March 2026. Petrol and diesel ostentation roseate to 6% successful May 2026, from 2.8% successful April 2026 and conscionable 0.5% successful March 2026, showing the transmission of substance costs. Fuel inflation, however, stayed supra February levels of 1.7%.
Higher substance prices besides showed successful the ostentation people of transport goods. Transport costs that shrunk mildly oregon were stagnant since January 2026, accrued 1.75% successful May 2026, mostly attributable to the summation successful logistics prices owed to the warfare successful West Asia.
The May 2026 ostentation was broadly successful enactment with economists’ forecasts. Further, economists expect the retail goods to go dearer successful June 2026 owed to outgo transmission from the West Asia war. The yearly CPI ostentation is expected to beryllium anyplace betwixt 5% and 5.5%, with imaginable complaint hikes successful October 2026 oregon December 2026 monetary argumentation review. Besides the outgo passing done from West Asia, analysts are besides tracking the less-than mean monsoon ensuing from El Nino.
