India retail inflation climbs to 3.93% in May as food, fuel costs bite

CPI quickened from 3.48% in April but stayed below RBI's 4% target for a 16th straight month. Food inflation hit 4.78%, with tomato prices surging 48.43%. Repo rate held at 5.25%; FY27 forecast pegged at 5.1%.

— Filed Fri, 12 Jun, 2026, 17:55 IST · Source ET Retail · Updated

India's retail inflation rose to 3.93% in May from 3.48% in April on higher food and fuel costs, staying below RBI's 4% target for the 16th straight month. Food inflation hit 4.78%; tomato prices surged 48.43%.

Why this matters

Inflation uptick follows RBI's own urban consumer confidence survey showing discretionary spend turning negative, signaling tighter household budgets even as headline CPI stays under target.

Retail-company signals steady at 2,771 over the past 90 days.