New Delhi, Jun 12 (PTI) Retail inflation inched up in May to 3.93 per cent compared to 3.48 per cent in the preceding month due to higher food prices, according to official data released on Friday.

Consumer Price Index-based inflation in the food basket was 4.78 per cent in May, higher from 4.2 per cent in April, according to the National Statistical Office (NSO) data.

Precious metal jewellery, tomato, ginger, raisin (kishmish), and monacca were the five items with the highest inflation. On the other hand, potato, peas, motor car and jeep, cumin (jeera) and 'motor cycle and scooter' were the top five items with low inflation at All India combined level in May, 2026.

The Reserve Bank of India (RBI), which mainly factors in CPI when arriving at its monetary policy, has been mandated by the government to ensure that headline inflation remains at 4 per cent, with a 2 per cent margin on either side.

Last week, the RBI raised its inflation projection for the current fiscal to 5.1 per cent from 4.6 per cent, largely due to mounting input costs, driven by the pass-through of higher global energy prices to retail petrol and diesel prices.

Since May, retail fuel prices have been raised cumulatively by 7.4 per cent for petrol and 8.4 per cent for diesel.

The increase implies a direct impact of about 36 basis points on headline inflation, which, along with second-order effects, would get reflected in consumer price (CPI) inflation in the coming months, the RBI said in its monetary policy statement early this month. PTI NKD NKD MR

Retail inflation rises on higher food and fuel prices as RBI lifts inflation outlook for the fiscal year. Retail inflation rose to 3.93 per cent in May, driven by higher food prices, while CPI food inflation increased to 4.78 per cent. The Reserve Bank of India factors CPI inflation in monetary policy and has a mandated headline inflation target of 4 per cent with a 2 per cent tolerance band. The RBI also raised its inflation projection, citing mounting input costs and the pass-through of higher global energy prices to retail petrol and diesel prices.