India’s annual inflation rate edged up to 3.48% in April 2026 from 3.4% in March, the highest level in a year yet still below market expectations of 3.8%. This was the fourth release under India’s revised CPI series, which updated item weights based on the Household Consumption Expenditure Survey from two fiscal years earlier, resulting in a higher share for non-food items in the consumer basket.
Food inflation accelerated to 4.2% from 3.87%. At the same time, consumer prices for transportation were essentially flat for a second consecutive month (-0.01% vs -0.05% in March), despite rising wholesale energy prices, as higher global benchmarks driven by the war in the Middle East and a weaker rupee pushed up fuel costs. In contrast, accommodation prices rose at a slower pace (1.71% vs 2.88%). On a monthly basis, overall consumer prices increased by 0.27%.
