Retail inflation at 16-month high of 3.9% as food items get dearer

📌 Summary:

• Retail inflation (CPI) rose to 3.9% in May 2026 from 3.5% in April — a 16-month high
• The increase was driven mainly by rising food prices
• It is the fastest pace since January 2025, when the index rose 4.06%
• Data released by MoSPI on June 12, 2026; inflation stays within the RBI's tolerance band but the uptick signals renewed food-price pressure

🎯 UPSC Relevance: GS3 — inflation dynamics, food prices, monetary policy transmission.

📝 Prelims Facts:

• CPI = Consumer Price Index, compiled by MoSPI/NSO
• May 2026 CPI: 3.9% (16-month high); April 2026: 3.5%
• RBI medium-term inflation target: 4% (+/- 2%)

🔑 Key Term: Consumer Price Index (CPI) — measures retail-level price change of a fixed basket of goods and services; India's headline inflation gauge.