CPI-based Inflation Hits 15-Month High in April

08-May-2026 11:24 AM

New Delhi. The country's retail inflation rate is estimated to have risen to 3.8 percent in April—a level that is not only the highest recorded in the last 15 months but also quite close to the Reserve Bank of India's medium-term target of 4 percent.

This clearly highlights the impact of the West Asian crisis on India. In March, the retail inflation rate—based on the Consumer Price Index (CPI)—was recorded at 3.4 percent; this is now projected to have climbed to 3.8 percent in April. In April 2025, the rate had reached only 3.5 percent. The Ministry of Statistics is expected to release the official figures for April 2026 next week.

According to economists, mineral oil and natural gas lie at the root of this inflationary surge. The inflation rate within the housing, water, electricity, gas, and other energy sources category is estimated to have risen from 1.9 percent in March to 3.2 percent in April. Nevertheless, the retail inflation rate is expected to remain below the mandated target of 4 percent, allowing the government to breathe a sigh of relief.

Within the food products category, prices for certain items witnessed a sharp rise, while the prices of other commodities recorded a decline. The inflation rate for edible oils rose by 2 percent and for tomatoes by 3 percent, whereas prices for potatoes and onions fell by approximately 4 percent.

The inflation rate within the food and fuel categories improved from 3.3 percent in March to 3.5 percent in April. The crisis in West Asia has once again intensified, while the looming threat of El Niño also remains a concern.