India Retail Inflation Rises To 3.4% In March, Still Within RBI Target Range
Retail inflation rises to 3.4% in March 2026, driven by food and commodity prices, remains within RBI target.
India’s retail inflation rose marginally in March 2026, reflecting a slight uptick in price pressures even as overall levels remained comfortably within the Reserve Bank of India’s medium-term target band, according to official data released by the Ministry of Statistics and Programme Implementation on Monday.
The Consumer Price Index (CPI)-based inflation stood at 3.4% year-on-year in March, compared to 3.21% in February. The increase was broadly in line with market expectations and indicates a modest rise in price momentum across key consumption categories.
Despite the monthly rise, inflation continues to remain below the Reserve Bank of India’s 4% target, suggesting that price stability is largely intact. Earlier in the year, inflation had eased to 2.75% in January under the revised CPI series, which uses 2024 as the new base year instead of 2012.
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Food inflation, however, saw a sharper movement, rising to 3.87% in March from 3.47% in February. The food and beverages segment also recorded a similar upward trend, driven by increases in essential commodities and select agricultural items, even as some staples witnessed price declines.
Core inflation, which excludes volatile food and fuel components, remained steady at 3.3%, indicating stable underlying demand conditions. Urban inflation edged higher to 3.11%, while rural inflation also increased to 3.63%, reflecting broader price pressures across both consumption segments of the economy.
Within the broader commodities basket, significant price increases were seen in select luxury and agricultural items, including jewellery categories such as silver and gold, as well as vegetables like tomatoes and cauliflower. However, prices of garlic, onions, potatoes, pulses, and litchis declined during the month, helping offset some of the overall inflationary impact.
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