Retail Inflation Rose To 3.93 Per Cent In May 2026: NSO Data

Retail inflation increased to 3.93 per cent in May 2026 from 3.48 per cent in April, mainly due to higher food prices and the gradual impact of rising fuel costs on the economy, according to data released by the National Statistics Office (NSO).

Food inflation, measured through the Consumer Food Price Index (CFPI), rose to 4.78 per cent in May, from 4.2 per cent in the previous month. This hike came as prices of several food items, particularly vegetables and other perishables, remained elevated.

However, the Consumer Price Index (CPI), which is the key measure of retail inflation, remains within the Reserve Bank of India’s (RBI) target range. The central bank has been tasked with keeping inflation at 4 per cent, with a tolerance band of 2 percentage points on either side.

Food And Fuel Costs Push Prices Higher

According to the NSO data, precious metal jewellery, tomato, ginger, raisin (kishmish), and monacca recorded the highest inflation among major items in May. In contrast, potato, peas, motor cars and jeeps, cumin (jeera), and motorcycles and scooters registered lower inflation levels.

The rise in inflation comes at a time when higher global energy prices are beginning to affect domestic fuel rates. Since May, retail petrol prices have increased by 7.4 per cent, while diesel prices have risen by 8.4 per cent.

The RBI had recently revised its inflation forecast for the current financial year to 5.1 per cent from 4.6 per cent. The central bank has noted that higher fuel prices could have a direct impact on inflation and may also increase transportation and production costs across sectors in the coming months.

Higher Inflation In Rural Areas

The latest data has shown that rural inflation remained higher than urban inflation. Rural areas recorded inflation of 4.25 per cent in May, while urban inflation stood below the national average at 3.93 per cent.

State-wise data has revealed significant variation in inflation levels. Telangana recorded the highest inflation at 6.15 per cent, while Mizoram reported the lowest at 1.03 per cent.