New Delhi, May 31 -- The Union finance ministry has flagged risks to the inflation outlook, citing recent fuel price hikes, global energy price volatility, rupee depreciation, the prospect of a below-normal monsoon and sharply rising wholesale prices, even as retail inflation remains within the Reserve Bank of India's target range.

In its monthly economic review released on Saturday, the ministry said "The inflation dynamics of April 2026 reflect a growing divergence between relatively contained consumer prices and sharply rising wholesale prices."

Retail inflation edged up to 3.48% in April from 3.4% in March, remaining below the Reserve Bank of India's 4% target with 2-6% band, while a surge in the wholesale price index (WPI) accelera...