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India’s retail inflation rose to a 4-month high of 3.48% in April, up from 3.40% in March. But the number still came in below market expectations of 3.8%, offering some relief amid rising global uncertainty.
Numbers show inflation gradually moving up over the past few months, especially food inflation, which climbed to 4.2% in April from 3.87% in March.
In simple terms, prices are still rising, and food is becoming a bigger contributor again.
The deets: inflation pressures were visible across multiple categories.
- Food & beverages inflation stood at 4.01%
- Restaurant and accommodation inflation came in at 4.2%
- Personal care and miscellaneous inflation surged to 17.66%
A major driver of that spike was precious metals. Silver jewellery prices jumped a massive 144% YoY, while gold, diamond, and platinum jewellery inflation remained above 40%.
Food items also saw mixed trends. Tomato prices rose 35.3%, while coconut prices jumped 44.6%.
On the other hand, potato prices fell nearly 24% and onions declined around 18%, helping offset some of the pressure.
Reasons behind the rise: a combination of global and domestic risks.
Crude oil prices remain elevated due to tensions between Iran & US, with India’s oil basket averaging around $105/barrel recently, much higher than earlier estimates for FY26.
At the same time, concerns over a weaker monsoon and a possible Super El Niño are raising fears around agricultural output and future food prices.
