Retail Inflation Rises To 3.48 Per Cent In April On Higher Food And Jewellery Prices

Retail inflation in April has risen slightly to 3.48 per cent, mainly driven by higher prices of food items and precious jewellery, according to official data released on Tuesday. The Consumer Price Index (CPI), with base year 2024, stood at 3.40 per cent in March, 3.21 per cent in February and 2.74 per cent in January.

The data have shown that price pressures have remained moderate but have picked up marginally on a month-on-month basis, reflecting changes in both food and non-food categories.

Food And Jewellery Lead Price Pressures

Food inflation rose to 4.20 per cent in April from 3.87 per cent in March, indicating an increase in prices of essential items. Higher vegetable prices and seasonal supply constraints have contributed to the rise.

Alongside food, precious jewellery has seen a sharp jump in prices. Silver jewellery recorded the highest inflation at 144.34 per cent, followed by coconut-copra at 44.55 per cent and gold, diamond and platinum jewellery at 40.72 per cent. Tomato prices rose 35.28 per cent, while cauliflower increased 25.58 per cent. These movements have added to overall inflationary pressure in the basket.

Mixed Trends Across Commodities

Some products experienced significant price rises, and some others experienced price reductions during the same timeframe. The prices of potatoes, onions, peas, motor cars, jeeps, and air conditioners have decreased, indicating uneven price movements across categories.

The data indicates that an increase in food inflation has been fuelled by select vegetables and edible oils, while other staple items have been relatively stable or even down due to a more favourable supply situation in some parts of the country.

Core Inflation

Core inflation remained stable at 3.4 per cent, indicating steady underlying price trends. Excluding precious metals, core inflation has remained closer to 2 per cent, suggesting limited pressure from non-volatile components.

Economists have told PTI that food inflation has risen partly due to the fading of last year’s favourable base effect and the emergence of seasonal price pressures. Some have also pointed out that higher input costs, including fuel and LPG, have gradually influenced service sector prices such as restaurants and accommodation.

Inflation in the electricity, gas and fuels category has eased to 0.7 per cent in April from 1.7 per cent in March, supported by stable fuel prices and base effects. However, concerns remain over possible pass-through of global energy price changes in the coming months.

Outlook And Risk Factors

The Reserve Bank of India (RBI) has forecasted the CPI inflation for 2026-27 at 4.6 per cent, while the first quarter of the fiscal year will have inflation pegged at 4 per cent. It has raised concerns over potential El Niño events that could impact monsoon patterns and agricultural production, as well as geopolitical tensions in West Asia and global energy price volatility.