India Headline Inflation Increased On Higher Food And Core Inflation

India's headline CPI inflation rose to 3.9% yoy in May 2026, driven by higher food and core goods prices. Analysts anticipate further inflationary pressure in June due to ongoing fuel price hikes and input cost pass-throughs.

Key Takeaways

• 1.May headline CPI inflation increased to 3.9% yoy compared to 3.5% yoy in April, driven largely by higher food and core inflation.
• 2.Core goods inflation rose by 0.2pp to 2.6% yoy, reflecting elevated input costs and the impact of the Middle East conflict.
• 3.Preliminary estimates project June headline inflation at 4.4% yoy, driven by sustained food price increases and fuel price adjustments.

Table of Contents

• Key numbers
• Main points
• Disclosure Appendix