It remained below the central bank’s 4-per cent medium-term target for the 16th straight month.
Data released recently by the Ministry of Statistics and Programme Implementation revealed a steep 43 per cent rise in the headline rate over the last five months.
India’s retail inflation rose to a 16-month high of 3.93 per cent in May compared to 3.48 per cent in April, fuelled by soaring food and fuel prices amid the Iran war.
It remained below the central bank’s 4-per cent medium-term target for the 16th straight month.
Prices of electricity, gas and other fuels rose by 0.81 per cent in May, while the inflation for clothing and footwear was 2.98 per cent.
May’s retail inflation figure marked the highest reading under India’s revamped CPI series launched in January 2026, with a revised consumption basket and new base year.
Prices of electricity, gas and other fuels rose by 0.81 per cent in May from a 0.69-per cent rise in April. Transport inflation was 1.75 per cent in the month, while the inflation for clothing and footwear was 2.98 per cent.
The Reserve Bank of India (RBI) during its recent monetary policy meeting had raised its inflation forecast for fiscal 2026-27 (FY27), signalling mounting price pressures from higher food costs and a recent pickup in consumer inflation amid the Middle East conflict. It now expects CPI inflation to average 5.1 per cent in FY27, up from the 4.6 per cent projection in its April policy review.
Fibre2Fashion News Desk (DS)
