April Inflation Shows Stable Prices, Monsoon Key for Future Trends

However, food price pressures remain elevated in select commodities, indicating the continued importance of supply-side monitoring, said PHDCCI.

"Among major commodity groups, transport inflation remained subdued at near-zero levels as Government has not increased retail pump prices despite Brent crude oil prices remaining above $100 per barrel in the international markets since the East Asia Crisis," said Rajeev Juneja, President, PHDCCI.

India's retail inflation (CPI) stood at 3.48 per cent in April on a year-on-year basis, according to provisional estimates.

Food inflation rose to 4.20 per cent compared with 3.87 per cent in March 2026. Rural food inflation at 4.26 per cent was higher than urban food inflation which stood at 4.10 per cent.

However, precious metal prices recorded comparatively higher inflation rates due to jump in international metal prices and depreciating INR compared to US dollar, Juneja added.

On the other hand, at the food item level, potatoes, onions, motor cars and jeeps, peas and chickpeas, and air conditioners recorded the lowest inflation rates during April.

"In India, recently, a deviation between food and non-food inflation trends continues to impact the inflation outlook. Volatility in agricultural commodities, baring seasonal commodities, and precious metals may continue to influence household inflation expectations in the near term," said Dr. Ranjeet Mehta, SG and CEO, PHDCCI.

Rajeev Sharan, Head of Research, Brickwork Ratings, said with the monsoon forecast still uncertain, the outlook hinges on whether early rains stabilise vegetable and cereal supplies or amplify existing stresses in perishables.

Core inflation at 3.3 per cent remains relatively contained, with categories such as housing (2.15 per cent), health (1.64 per cent), household goods (1.61 per cent), and several non-food categories showing moderate price momentum.

"Overall, inflation is within a manageable range, but the monsoon will determine whether India sustains this benign core trend or faces renewed, broad-based price pressures," said Sharan.

- IANS