India’s retail inflation eases to 3.40% in March 2026, food prices remain moderate
Consumers and sellers as seen at a vegetable market in Kolkata , India , on 12 July 2023 . Spiraling prices of tomato, onion and pulses are emerging as new risks that is fueling India's retail inflation to 4.6 % in June ,The El Nino influence paired with reducing WPI on retail inflation has made the situation worse for consumers according to finance ministry reports. (Photo by Debarchan Chatterjee/NurPhoto via Getty Images)
India’s retail inflation, measured by the Consumer Price Index (CPI), stood at 3.40 per cent in March 2026 (provisional), slightly higher than 3.21 per cent recorded in February, according to data released by the Ministry of Statistics & Programme Implementation. Rural inflation was recorded at 3.63 per cent, while urban inflation came in lower at 3.11 per cent, reflecting relatively stable price trends across regions.
Food inflation, tracked through the Consumer Food Price Index (CFPI), rose to 3.87 per cent in March from 3.47 per cent in February, with rural areas witnessing a higher rate of 3.96 per cent compared to 3.71 per cent in urban centres. Housing inflation remained contained at 2.11 per cent overall. Among key commodities, sharp declines in prices of essentials such as onions, potatoes and pulses helped ease overall inflation, while vegetables like tomatoes and cauliflower continued to record elevated price levels, albeit with some moderation compared to the previous month.
The data also highlighted significant price pressures in non-food segments, particularly in jewellery, where silver and gold items saw steep inflation rates. At the state level, inflation trends varied widely, with some southern states reporting higher price rises compared to the national average. Meanwhile, transport inflation remained largely flat, indicating stable fuel and mobility costs during the month.
The government noted that price data was collected from over 1,400 urban markets and nearly 1,500 villages, ensuring robust coverage. The next set of CPI data for April 2026 is scheduled to be released on May 12.
