India's retail inflation measured by the Consumer Price Index fell to 4.1% in April 2026, its lowest level in 14 months, down from 4.5% in March. The sharp moderation was driven primarily by a 6.2% decline in vegetable prices and a 3.8% drop in cereal prices, aided by a bumper rabi harvest and improved supply chain logistics.
Core inflation, which excludes food and fuel, also eased marginally to 3.9% from 4.1%, reflecting subdued demand pressures and benign input cost environment for manufacturers. Fuel and light inflation remained low at 2.1% as global crude oil prices stayed rangebound. Housing inflation was stable at 4.6%.
The data provides comfort to the Reserve Bank of India, which has maintained an inflation target of 4% with a band of plus or minus 2%. Economists now expect inflation to remain below 4.5% through most of FY27 barring any major weather-related disruptions. The soft print raises hopes of another rate cut in the October MPC meeting.
