India's retail inflation at 3.48% in April; silver, gold prices surge
India's retail inflation, measured by the Consumer Price Index (CPI), stood at 3.48 per cent in April 2026 on a year-on-year basis, according to data released by the Ministry of Statistics on Tuesday, 12 April. The reading remains well below the Reserve Bank of India's (RBI) medium-term target of 4 per cent, offering a degree of macroeconomic comfort even as precious metal prices and select food items registered sharp increases.
Key Price Movements in April
The steepest price surge during the month was recorded in silver jewellery, which jumped 144.34 per cent year-on-year, followed by gold jewellery at 40.72 per cent — reflecting the global rally in precious metals amid geopolitical uncertainty. On a sequential basis, CPI inflation was broadly stable, inching up from 3.4 per cent in March to 3.48 per cent in April.
Food Inflation: A Mixed Picture
Overall food inflation in April came in at 4.2 per cent. Vegetable prices provided relief in some pockets — potato prices fell by 23.69 per cent and onion prices declined by 17.67 per cent. Prices of chickpea and peas also eased during the month. However, tomato prices surged 35.28 per cent, underscoring the continued volatility in perishable food items that has characterised India's inflation landscape over the past two years.
Energy Prices Contained by Government Policy
The housing, water, electricity, gas and other fuels category recorded a modest inflation rate of 1.71 per cent in April, despite elevated global crude prices linked to the Middle East conflict. The subdued reading reflects the government's decision not to pass on international energy price increases to domestic consumers — a policy choice that provides short-term relief but raises questions about fiscal sustainability if global oil prices remain elevated.
RBI's Inflation Outlook for 2026-27
RBI Governor Sanjay Malhotra stated that the central bank has projected CPI inflation for 2026-27 at 4.6 per cent, with a quarterly breakdown of Q1 at 4.0 per cent, Q2 at 4.4 per cent, Q3 at 5.2 per cent, and Q4 at 4.7 per cent. Malhotra noted:
