EconomySaturday, 20 June 2026·The Hindu - Economy
Retail inflation rises to 3.9% in May 2026, nearing RBI’s 4% target
CPI inflation climbed to 3.9% in May 2026, driven by food prices, with tomato inflation at 48.4% and food inflation at 4.8%.
Key highlights
Direct fact
On June 12, 2026, MoSPI released data showing India’s Consumer Price Index (CPI) inflation at 3.9% in May 2026, the highest in 16 months and just 0.07% below the RBI’s 4% target.
Key specifics
- CPI inflation rose to 3.9% in May 2026 from 3.5% in April 2026.
- The highest retail inflation since January 2025 was recorded after 16 months, when CPI had risen 4.06%.
- Consumer Food Price Index (CFPI) inflation increased to 4.8% in May 2026 from 4.2% in April 2026.
- Tomato prices rose 48.4% in May 2026, while onion deflation slowed to 2.2% and potato prices continued to deflate at 23%.
- Housing, water, electricity, gas and other fuels inflation stood at 1.73%, and petrol and diesel inflation rose to 6% in May 2026.
Exam lens
Economy MCQ on CPI, CFPI, RBI target inflation 4%, and food-led inflation; TNPSC may ask the release date, the ministry, and which items pushed inflation up in May 2026.