The RBI reported that India's domestic economy successfully navigated a tumultuous global phase, showing robust credit growth and a steady external sector. Despite delayed kharif sowing and rising retail inflation driven by food and fuel, healthy demand and resilient industrial and services sectors underpin a buoyant outlook.
India's retail inflation climbed to 3.93% in May, up from 3.48% in April, primarily due to rising food and fuel prices. Despite this increase, inflation remains below the Reserve Bank of India's 4% target for the 16th consecutive month, allowing policymakers room to support economic growth. The RBI has raised its FY27 inflation forecast to 5.1%.
India signs BrahMos missile deal with Vietnam, warns of rising retail inflation due to fuel price hikes, and experiences a building collapse in Delhi killing six.
Global analytics firm Crisil warns that a sharp rise in India's wholesale inflation (8.3% in April 2026) may soon impact consumer prices, despite current retail inflation remaining low (3.5%).
Global analytics firm Crisil warns that India's sharp rise in wholesale inflation (WPI) to 8.3% in April 2026, driven by the Middle East conflict, is likely to soon impact consumer prices (CPI), despite current retail inflation remaining low at 3.5%.
India's retail inflation remains largely unaffected by West Asian conflict, with SBI retaining its FY27 forecast at 4.5%. While imported inflation eased slightly, rising food prices, particularly tomatoes, are a key driver. Future trends hinge on energy price pass-through and summer crop progress, with the RBI flagging upside risks.
India's retail inflation rose to 3.48% in April, a one-year high, driven by higher food prices (4.20% CFPI) and broader household essential price pressures, with rural inflation outpacing urban areas.
