Retail inflation in India surges to 3.4% in March
What's the story
India's retail inflation has risen to 3.4% in March, up from 3.2% in February, according to data released today. The increase is mainly due to rising food prices during the month. Despite the sequential uptick, the March figure remains below the RBI's comfort zone of 4%. Food inflation increased from 3.47% in February to 3.87% in March, indicating stronger price pressures on household essentials like vegetables and pulses.
Comparison
Rural inflation continues to outpace urban inflation
Rural inflation continued to outpace the urban inflation at the headline level. The Consumer Price Index (CPI) inflation in rural areas was recorded at 3.63% in March, compared to 3.11% in urban centers. The combined CPI index rose from 104.57 in February and 101.39 in March 2025 to reach a new high of 104.84 last month, indicating rising price levels across both rural and urban regions of India.
Expenditure groups
Personal care, social protection see sharpest rise
Among major expenditure groups, personal care, social protection, and miscellaneous goods/services witnessed the sharpest rise at 18.65%. Paan, tobacco/intoxicants registered an inflation of 4.23%, while food/beverages stood at 3.71%. Clothing/footwear inflation was recorded at 2.75%, with housing/water/electricity/gas/other fuels rising by 1.97%. Transport inflation remained flat, indicating limited fuel/mobility-related pressure during March, despite the West Asia crisis as government kept pump prices unchanged.
State-wise inflation
Highest inflation reported by Telangana
Among states, Telangana has reported the highest inflation at 5.83% in March, followed by Andhra Pradesh (4.05%), Karnataka (3.96%), Tamil Nadu (3.77%), and Rajasthan (3.64%). The data suggests that certain regions are facing higher price pressures than others in India.