India's April CPI inflation at 3.48%: Transport stable, monsoon key risk
India's retail inflation (CPI) held at 3.48 per cent in April 2026 on a year-on-year basis, according to provisional estimates, with industry leaders noting relatively stable price conditions across several core consumption categories — particularly transport. However, food price pressures remain elevated in select commodities, underscoring the need for continued supply-side monitoring.
Transport and Core Inflation Remain Subdued
Rajeev Juneja, President of the PHD Chamber of Commerce and Industry (PHDCCI), noted that transport inflation remained subdued at near-zero levels, as the government has not increased retail pump prices despite Brent crude oil prices remaining above $100 per barrel in international markets since the East Asia Crisis.
Core inflation stood at 3.3 per cent, with categories such as housing (2.15 per cent), health (1.64 per cent), and household goods (1.61 per cent) showing moderate price momentum. Several other non-food categories also reflected contained price pressures, pointing to broad macroeconomic stability in the near term.
Food Inflation Edges Higher, Rural Areas More Affected
Food inflation rose to 4.20 per cent in April, up from 3.87 per cent in March 2026. Rural food inflation at 4.26 per cent outpaced urban food inflation, which stood at 4.10 per cent, reflecting persistent supply-side stress in agricultural markets outside major cities.
At the commodity level, potatoes, onions, peas and chickpeas, motor cars and jeeps, and air conditioners recorded the lowest inflation rates during April. Notably, the divergence between food and non-food inflation trends continues to cloud the broader inflation outlook, according to PHDCCI.
Precious Metals Add Upward Pressure
Precious metal prices recorded comparatively higher inflation rates during the month, driven by a jump in international metal prices and a depreciating Indian rupee (INR) against the US dollar, Juneja added. This segment remains a persistent outlier in an otherwise contained inflation picture.
Dr. Ranjeet Mehta, Secretary General and CEO of PHDCCI, said,
