Reserve Bank of India flags CPI inflation rise to 3.9%
The Reserve Bank of India (RBI) is worried about inflation picking up steam: CPI inflation rose to 3.9% in May 2026 from 3.5% in April, mostly because food and fuel are getting pricier.
Fuel costs jumped sharply, with petrol and diesel both up over ₹7 per liter, and everyday essentials like rice, wheat, and vegetables also got more expensive.
RBI cites West Asia, U.S.-Iran uncertainty
The RBI points to ongoing conflict in West Asia and uncertainty around the U.S.-Iran peace deal as big reasons for these price hikes.
These global issues are making things costlier at home by disrupting trade and pushing up energy prices.
Wholesale inflation hit a two-year high too, but the RBI says India's economy is still holding strong, just with some bumps ahead if things stay unpredictable globally or weather turns rough.