Retail inflation climbs to 13-month high of 3.5% in April on higher food, restaurant prices

📌 Summary:

• India's retail/headline inflation (CPI) quickened to a 13-MONTH HIGH of 3.5% in April 2026, up from 3.4% in March 2026 (the first month after the start of the West Asia war)
• Print is softer than market expectations but inflation outlook is clouded by supply-side disruptions from geopolitics and El Niño
• Food & beverages inflation rose to 4% (vs 3.7% in March) — driven by tomatoes and coconut; potatoes and onions stayed in deflation
• Restaurant & accommodation inflation surged to 4.2% (vs 2.9%) as eateries passed on higher LPG prices to consumers
• Transport inflation fell to -0.01% (vs 0%) — fall driven by passenger services; goods transport prices instead rose 7.6% indicating second-round oil-price pass-through is on the way
• Other key segments largely flat: clothing & footwear 2.8%, health 1.6%, info & communication 0.5%, education 3.1%

🎯 UPSC Relevance: GS3 — Indian Economy: Growth, Inflation, RBI monetary policy framework (inflation target 4% +/- 2%); also Food Security and Agriculture price dynamics.

📝 Prelims Facts:

• CPI inflation April 2026: 3.5% (13-month high); March 2026: 3.4%
• CPI is the headline inflation measure tracked by RBI under flexible inflation targeting (FIT) since 2016
• RBI's CPI inflation target: 4% with a tolerance band of +/- 2% (2%-6%)
• CPI compiled by National Statistical Office (NSO) under Ministry of Statistics & Programme Implementation
• Food & beverages have ~46% weight in the CPI basket

🔑 Key Term: Flexible Inflation Targeting (FIT) — monetary policy framework introduced via the RBI Act amendment in 2016, under which the Monetary Policy Committee (MPC) targets CPI inflation at 4% (+/- 2%) over the medium term.