EconomyWednesday, 17 June 2026·The Hindu - Economy
Retail inflation rises to 3.9% in May 2026 as food prices climb
CPI inflation increased to 3.9% in May 2026, the highest in 16 months, driven mainly by food prices and higher fuel-linked costs.
Key highlights
Direct fact
In May 2026, India’s Consumer Price Index (CPI) inflation rose to 3.9% from 3.5% in April, the highest in 16 months, according to MoSPI data released on 12 June 2026.
Key specifics
- The Consumer Food Price Index (CFPI) inflation increased to 4.8% in May 2026 from 4.2% in April.
- Tomato prices rose 48.4% in May 2026, while onion deflation slowed to 2.2%.
- Potato prices continued to deflate at 23% for the second consecutive month.
- Housing, water, electricity, gas and other fuels inflation rose to 1.73%, and this group accounts for 17.6% of the retail basket.
- Petrol and diesel inflation rose to 6% in May 2026, showing fuel-cost transmission into retail prices.
Exam lens
TNPSC economy question focus: CPI, CFPI, retail basket, fuel transmission. One-liner: May 2026 CPI inflation at 3.9% was driven by food and fuel, with tomato inflation at 48.4% and CFPI at 4.8%.