CPI Inflation moderately up to 3.40% in March 2026, but food prices pose near-term risks says PHDCCI
Consumer Price Index (CPI) based inflation for March 2026 (provisional) stood at 3.40% year-on-year (y-o-y), reflecting a modest increase from 3.21% in February 2026. Rural inflation was recorded at 3.63%, while urban inflation stood at 3.11%. Food inflation (CFPI) (y-o-y) rose to 3.87%, up from 3.47% (y-o-y) in the previous month.
City Air News
Apr 13, 2026 08:21
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New Delhi, April 13, 2026: Consumer Price Index (CPI) based inflation for March 2026 (provisional) stood at 3.40% year-on-year (y-o-y), reflecting a modest increase from 3.21% in February 2026. Rural inflation was recorded at 3.63%, while urban inflation stood at 3.11%. Food inflation (CFPI) (y-o-y) rose to 3.87%, up from 3.47% (y-o-y) in the previous month.
"The current headline CPI inflation at 3.40%, remains broadly aligned with RBI’s medium-term price stability objective. The persistence of low prices in transport group and moderate housing inflation suggests that underlying supply-side pressures are contained. However, volatility in food components warrant continued policy vigilance as fears of poor monsoon caused by El Nino conditions looms large says Rajeev Juneja, President, PHDCCI.
Food and Beverage price dynamics (weight 36.75%) continued to play a significant role in shaping the overall CPI inflation trajectory. Several essential food items, recorded substantial decrease, contributing to overall price stability. Notably, prices of commodities that form majority of daily household consumption like onion declined by 27.76%, while potato prices fell by 18.98%, and pulses such as arhar/tur also remained in negative territory.
These declines helped counterbalance upward pressures from certain vegetables like tomato (35.99%) and cauliflower (34.11%), which continued to exhibit elevated inflation rates. At the category level, inflation remained contained across most divisions, with transport inflation near zero, he added.
Outlook
"Looking ahead, CPI is expected to remain within a manageable range in the near term, supported by continued moderation in key food items. However, upside risks continue from supply-side shocks in perishables, and international commodity prices. The overall trajectory will depend on monsoons, global input costs, and domestic demand conditions says Dr. Ranjeet Mehta, SG&CEO, PHDCCI."
