India’s retail inflation edged up to 3.40% in March 2026 on a year-on-year basis, reflecting a broadly stable price environment despite sharp divergences across categories, according to official data released by the Ministry of Statistics and Programme Implementation.
The Consumer Price Index (CPI), with base year 2024=100, showed rural inflation at 3.63%, outpacing urban inflation, which stood at 3.11%. The combined CPI index for March was recorded at 104.84, marginally higher than 104.57 in February, indicating a gradual uptick in price levels.
Food inflation, measured by the Consumer Food Price Index (CFPI), came in at 3.87% for March, rising from 3.47% in February. Rural food inflation was higher at 3.96% compared to 3.71% in urban areas, suggesting persistent price pressures in essential commodities.
Housing inflation remained subdued at 2.11%, with rural areas recording 2.54% and urban centres at 1.95%, underscoring relatively stable housing costs.
A closer look at item-level trends reveals a stark contrast. Essential vegetables such as onions (-27.76%), potatoes (-18.98%), and garlic (-10.18%) continued to see deflation, helping contain overall food inflation. Pulses like arhar and peas also recorded negative inflation.
However, price spikes were pronounced in select categories. Silver jewellery saw an extraordinary surge of 148.61%, while gold and diamond jewellery prices rose 45.92%. Among food items, coconut (copra), tomatoes (35.99%), and cauliflower (34.11%) registered significant inflation, highlighting volatility in specific segments.
At the sectoral level, “personal care, social protection and miscellaneous goods and services” recorded the highest inflation at 18.65%, while transport inflation remained flat. Education (3.30%) and restaurants and accommodation services (2.88%) also contributed moderately to overall inflation.
State-wise, Telangana reported the highest inflation among large states at 5.83%, followed by Andhra Pradesh (4.05%) and Karnataka (3.96%).
The data also showed that price collection remained robust, with 100% coverage of rural and urban markets and near-complete reporting rates, lending credibility to the estimates.
Overall, while headline inflation remains within a comfortable range, the divergence between categories — particularly sharp increases in precious metals and select food items — signals underlying volatility that could influence price trends in the coming months.
