Fuel hike to add 10-25 bps to CPI; retail braces for price pass-through as RBI eyes projection reset

Petrol-diesel price hikes set to lift headline CPI by 10-25 bps, with freight rates rising 2.5-3% as diesel makes up 50-55% of truck costs. Companies that held back price increases are expected to raise rates, squeezing retail margins and consumer demand. RBI likely to reassess FY27 inflation projections.

— Filed Sat, 16 May, 2026, 07:02 IST · Source Times of India · Business · Updated

Petrol-diesel price hikes likely to add 10-25 bps to India's headline CPI, with freight rates rising 2.5-3%. Companies holding back on price increases expected to raise rates, pressuring retail margins and consumer demand; RBI may revise inflation projections.