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Home/Business/Economy/India’s May Inflation Hits 3.93%, Driven…

India’s May Inflation Hits 3.93%, Driven by Food & Fuel

Economy
By ThePip Desk•
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A medium close-up shot of a market stall in India, piled high with fresh vegetables.

Vegetables on a market stall in India.

Key Highlights

India’s retail inflation rose to 3.93% in May 2026, the fourth consecutive monthly increase, primarily due to higher food and fuel prices. Remains within RBI target.

Inflation Climbs to 3.93%

India’s retail inflation, as measured by the All India Consumer Price Index (CPI), surged to 3.93% (Provisional) in May 2026. This marks a significant increase from 3.48% (Final) in April 2026, driven primarily by rising food and fuel costs.

This is the fourth consecutive monthly increase in the country’s inflation figures.

Key Inflation Metrics

  • Overall CPI Inflation (May 2026): 3.93% (Provisional)
  • Overall CPI Inflation (April 2026): 3.48% (Final)
  • Food Inflation (May 2026): 4.78% (Provisional), up from 4.20% (Final) in April 2026
  • Rural CPI Inflation (May 2026): 4.25%, up from 3.74% in April 2026
  • Urban CPI Inflation (May 2026): 3.53%, up from 3.16% in April 2026

RBI Target Range Maintained

Despite the increase, CPI inflation remains within the Reserve Bank of India’s (RBI) target range of 2%-6%. It is also gradually approaching the central bank’s medium-term target of 4%.

IndiaReserve Bank of India