India's Retail Inflation Climbs to 3.40 Per Cent in March 2026

India's retail inflation rose marginally to 3.40% in March 2026 from 3.21% in February. The data, released by the Ministry of Statistics, also showed a rise in food inflation to 3.87% from 3.47% in the previous month.

The retail inflation in the country, measured by the Consumer Price Index (CPI), rose marginally to 3.40 per cent in March 2026 on a year-on-year basis, according to data released by the Ministry of Statistics and Programme Implementation.

The latest inflation figure marks an increase from 3.21 per cent recorded in February 2026, indicating a slight uptick in price pressures at the consumer level. The data assumes significance as it comes amid rising global uncertainties due to the West Asia conflict.

Rural vs Urban Inflation

For rural areas, inflation stood at 3.63 per cent in March, compared to 3.37 per cent in February. Urban inflation also edged higher to 3.11 per cent from 3.02 per cent in the previous month.

Spike in Food Inflation

Food inflation, measured by the Consumer Food Price Index (CFPI), rose to 3.87 per cent in March from 3.47 per cent in February, reflecting an increase in food price pressures. Rural food inflation was recorded at 3.96 per cent, while urban food inflation stood at 3.71 per cent during the month.

The Ministry stated, "Year-on-year inflation rate based on All India Consumer Price Index (CPI) with base year 2024 for March, 2026 over March, 2025 is 3.40 per cent (Provisional). Corresponding inflation rates for rural and urban are 3.63 per cent and 3.11 per cent, respectively".

Category-Wise Inflation Details

Housing inflation for March stood at 2.11 per cent, with rural housing inflation at 2.54 per cent and urban at 1.95 per cent, indicating relatively moderate price increases in the housing segment.

Among major categories, 'food and beverages' recorded inflation of 3.71 per cent at the combined level, while 'paan, tobacco and intoxicants' saw higher inflation at 4.23 per cent. Clothing and footwear inflation stood at 2.75 per cent, and housing-related segments such as water, electricity, gas and other fuels recorded inflation of 1.97 per cent.

In contrast, certain categories continued to witness deflation or low inflation. Transport inflation remained largely flat at around zero per cent, while information and communication recorded a low inflation rate of 0.33 per cent.

Data also highlighted sharp price movements in specific items. Among items with low inflation, onion, potato, garlic, arhar and peas continued to remain in deflation, although the extent of decline moderated in some cases. On the other hand, high inflation was observed in silver jewellery, gold and other precious jewellery, coconut, tomato and cauliflower. (ANI)

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