New Delhi, June 12: The retail inflation rate for May has been recorded at 3.93% year-on-year. During this period, prices of potatoes, peas, cumin, and vehicles have seen a decline. This is an increase from 3.48% in April 2026, according to data released by the Ministry of Statistics and Programme Implementation on Friday.
Government data indicates that the retail inflation rate in rural areas was 4.25% in May, while it was 3.53% in urban areas.
In May, the retail food inflation rate was 4.78%, up from 4.20% in April. The retail food inflation rate in rural areas stood at 4.85%, compared to 4.66% in urban areas last month.
Among the top five products that saw price decreases year-on-year in May were potatoes (-23.71%), peas (-11.47%), motor cars and jeeps (-7.19%), cumin (-4.59%), and motorcycles and scooters (-3.56%).
Conversely, the top five products that experienced an increase in retail inflation included silver jewelry (155.23%), tomatoes (48.43%), gold, diamond, and platinum jewelry (40.93%), ginger (32.49%), and raisins (21.97%).
The data revealed that among the five states with populations exceeding 5 million, the highest retail inflation in May was recorded in Telangana (6.15%), Tamil Nadu (5.11%), Andhra Pradesh (4.90%), Karnataka (4.59%), and Odisha (4.54%).
The continuous rise in inflation indicates that after a stable start to the year, pressure on prices is now increasing.
Economists suggest that high crude oil prices and ongoing geopolitical tensions in West Asia are primary concerns contributing to imported inflation.
In its monetary policy review for June, the Reserve Bank of India (RBI) raised its inflation forecast for the fiscal year 2027 from 4.6% to 5.1%. This adjustment was attributed to concerns over a potentially below-normal monsoon due to El Niño and the risks posed by elevated global energy prices.
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