India's retail inflation rate climbed to 3.93% in May 2026, marking an increase from 3.48% in April. This acceleration was largely attributed to a significant rise in food prices, according to the latest Consumer Price Index (CPI) data released by the Ministry of Statistics and Programme Implementation (MoSPI) on Thursday, June 12, 2026.
The provisional year-on-year inflation rate based on the All India CPI showed rural inflation at 4.25% and urban inflation at 3.53% for May. These figures represent an uptick from April's rates, which stood at 3.74% for rural areas and 3.16% for urban centers.
Food Prices Fuel Overall Increase
Food inflation, as measured by the Consumer Food Price Index (CFPI), also edged higher during May. The all-India food inflation rate reached 4.78%, compared to 4.20% in April. Rural food inflation was recorded at 4.85%, while urban food inflation was 4.66%. Among the broad consumption categories, food and beverages registered an inflation rate of 4.55%, and services like restaurants and accommodation saw inflation at 5.75%.
Divergent Trends Across Consumption Categories
While food prices were a primary driver, other categories also showed varied inflationary trends. The sharpest increase was observed in the personal care, social protection, and miscellaneous goods and services segment, where inflation surged to 18.46%. Housing inflation, however, remained relatively subdued at an estimated 2.12% for May.
A closer examination of item-wise data revealed significant divergences. Silver jewellery experienced a staggering 155.23% annual increase, followed by tomatoes at 48.43%, and gold, diamond, and platinum jewellery at 40.93%. Prices for ginger and raisins also remained elevated, with inflation rates of 32.49% and 21.97%, respectively.
Commodities See Deflation
Conversely, several commodities continued to witness deflationary trends. Potato prices remained sharply lower, with inflation at -23.71%, and peas recorded -11.47% inflation. Motor cars and jeeps, cumin (jeera), and motorcycles and scooters also saw prices below their year-ago levels.
State-Wise Inflation Snapshot
Among states and Union Territories with populations exceeding 50 lakh, Telangana recorded the highest combined inflation rate at 6.15% in May. It was followed by Tamil Nadu (5.11%), Puducherry (5.00%), and Andhra Pradesh (4.90%). Uttar Pradesh, India's most populous state, reported combined inflation of 3.97%, marginally above the national average. Delhi's inflation remained relatively contained at 2.50%, while Mizoram and Tripura recorded among the lowest rates at 1.03% and 2.02%, respectively.
The Ministry confirmed that price data for the index was collected from 1,407 urban markets (including online markets) and 1,465 villages, achieving a 100% response rate in both rural and urban areas during May. The next CPI release, covering June 2026, is scheduled for July 13, 2026.