New Delhi, May 20 -- India's retail inflation has remained well within the upper limit of the Reserve Bank of India's 2%-6% tolerance band since October 2024.

However, with energy prices still elevated, India's benign inflation dynamics are at risk.

In April 2026, Consumer Price Index (CPI)-based inflation stood at 3.48%- a 13-month high- largely due to a rise in prices of food and beverages, clothing, housing and utilities amid rising energy costs driven by the West Asia conflict.

India's wholesale inflation surged to a 42-month high of 8.3% in April from 3.88% in March. This sharp rise in wholesale inflation was primarily due to higher fuel prices. The impact of the US-Iran war and the blockade of the Strait of Hormuz has slowly star...