India's Retail Inflation Rises to 3.93% in May 2026 as Food Prices Increase

India's retail inflation climbed to 3.93% in May, up from 3.48% in April, as reported by the Ministry of Statistics and Programme Implementation.  

The rise is attributed to increased food prices and multiple fuel price revisions. 

Impact of Rising Food and Fuel Prices 

The primary factor contributing to the inflation increase was the food basket, with food inflation rising to 4.78% in May from 4.20% in April.  

The broader food and beverages category also saw inflation rise to 4.6% from 4.0% in the previous month.  

Additionally, fuel prices, including petrol, diesel, LPG, and CNG, were revised multiple times, contributing to the overall inflationary pressure. 

Rural and Urban Inflation Trends 

Rural consumers experienced higher inflation, with rates increasing to 4.25% in May from 3.74% in April.  

Urban inflation also rose, reaching 3.53% compared to 3.16% in the previous month. This rural-urban divide highlights the varying impact of inflation across different regions. 

Core Inflation and Sectoral Breakdown 

Core inflation, which excludes food and energy prices, increased to 3.8% in May from 3.4% in April.  

Dining and personal indulgences saw notable inflation, with restaurants and accommodation services recording a rate of 5.8%, while the paan, tobacco, and intoxicants category stood at 4.83%. 

Read More: CEA Flags FY27 Growth Risks as RBI Cuts GDP Forecast To 6.6%! 

Sectoral Inflation Details 

Clothing and footwear inflation rose to 2.98% from 2.80% in April, while housing and utilities saw a slight increase from 1.71% to 1.73%.  

Health inflation provided some relief, softening to 1.49% from 1.64%. Educational services recorded an inflation rate of 2.99%, recreation, sport, and culture stood at 1.98%, and furnishings and household equipment saw a 1.90% increase. 

Conclusion 

In May, India's retail inflation rose to 3.93%, driven by food inflation at 4.78% and core inflation at 3.8%. Rural inflation increased to 4.25%, while urban inflation reached 3.53%. Fuel price revisions also contributed to the inflationary trend. 

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