EconomyThursday, 18 June 2026·The Hindu - Economy
Retail inflation rises to 3.9% in May 2026, nearing RBI’s 4% target
CPI inflation increased to 3.9% in May 2026, driven mainly by higher food prices and rising fuel costs.
Key highlights
Direct fact
On June 12, 2026, the Ministry of Statistics and Programme Implementation (MoSPI) said Consumer Price Index (CPI) inflation rose to 3.9% in May 2026, the highest in 16 months and just 0.07 percentage point below the RBI’s 4% target.
Key specifics
- May 2026 CPI inflation: 3.9%, up from 3.5% in April 2026.
- MoSPI released the data on June 12, 2026, showing the fastest retail price rise since January 2025.
- Consumer Food Price Index (CFPI) inflation rose to 4.8% in May 2026 from 4.2% in April.
- Tomato prices jumped 48.4% in May 2026, while onion deflation slowed to 2.2%.
- Housing, water, electricity, gas and other fuels formed 17.6% of the retail basket and inflation in that group rose to 1.73%.
Exam lens
Question type: CPI and food inflation, RBI target, MoSPI data, basket composition. TNPSC one-liner: remember 3.9% CPI in May 2026, 4.8% food inflation, and the RBI target of 4%.