Retail inflation hits 13-month high of 3.5% in April due to food and dining costs
India's retail inflation, measured by the Consumer Price Index (CPI), accelerated to a 13-month high of 3.5% in April 2026, slightly below economists' expectations. This increase was primarily driven by higher food inflation, which climbed to 4% from 3.7% in March, and rising prices in the restaurant and accommodation services sector, up to 4.2% from 2.9%. The price surge reflects the passing on of higher fuel costs to consumers and geopolitical disruptions, alongside the impact of El Nino, clouding the economic outlook despite an ease in transport sector inflation.
Key Points
- Retail inflation in India reached a 13-month high of 3.5% in April 2026.
- The primary drivers for this inflation were increased food prices and higher costs in the restaurant and accommodation services sector.
- Food and beverages inflation rose to 4% in April from 3.7% in March.
- Inflation in restaurant and accommodation services sharply quickened from 2.9% to 4.2%.
- Geopolitical disruptions and El Nino continue to pose upside risks to the inflation outlook.
Exam Facts
- Retail inflation (CPI) for April 2026: 3.5%.
- Food and beverages inflation in April 2026: 4%.
- Restaurant and accommodation services inflation in April 2026: 4.2%.
- Transport sector inflation in April 2026: -0.01%.
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