India's CPI Inflation: Price Pressures Are Gradually Broadening

India's headline CPI inflation rose to 3.9% y/y in May 2026. Price pressures are broadening, driven by food, fuel, and core components, leading ANZ to project a 5% inflation average for FY27 and a 25bp rate hike in August.

Key Takeaways

• 1.CPI inflation is on an upward trajectory, with price pressures broadening beyond headline figures.
• 2.Energy price volatility and pass-through effects are key risks to the inflation outlook.
• 3.ANZ projects average CPI inflation of 5% for FY27, prompting expectations of a 25bp rate hike in August.

Table of Contents

• India's CPI inflation: price pressures are gradually broadening
• Key highlights
• Outlook

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial