Mumbai : SBI Research, in its latest 'Ecowrap' report, revealed that India's Consumer Price Index (CPI) based retail inflation rose slightly to 3.48% in April 2026, compared to 3.40% in March 2026. The report notes that while overall inflation remains relatively stable, certain sectors and rural markets are experiencing distinct price pressures.
A significant finding of the report is the divergence between rural and urban inflation. Rural inflation, at 3.74%, has outpaced urban inflation (3.16%), primarily driven by sharper food price increases and supply-side constraints in rural areas. Food inflation overall rose to 4.01% in April, with items like chicken, milk, and vegetable oils (refined and mustard oil) being the major contributors, aligning with a global uptick in food commodity prices.
The report also highlights the impact of specific shortages and global trends. A notable increase in inflation for restaurants and accommodation services was observed, which the report attributes to an LPG shortage. Conversely, a softening in gold and silver prices led to a 100-basis point decline in inflation within the personal care division. Despite the ongoing crisis in West Asia and exchange rate fluctuations, the direct impact on the current month's CPI has remained limited, though the situation continues to be a key point of interest for future projections.
Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, SBI, stated: "While the headline inflation remains within a narrow range, the faster rise in rural inflation reflects underlying supply-side challenges. The trend in global vegetable oil and meat prices is also mirroring in our domestic data, necessitating a close watch on international commodity cycles."