13 April,2026 05:41 PM IST | New Delhi | mid-day online correspondent
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India's retail inflation edged up marginally to 3.4 per cent in March on a year-on-year basis, according to the latest data released by the Ministry of Statistics and Programme Implementation on Monday. The figures are based on the revised Consumer Price Index (CPI) series, with 2024 as the new base year, reported IANS.
The March inflation figure shows a slight uptick from 3.21 per cent recorded in February and the revised 2.74 per cent in January, when the updated CPI series was introduced. Despite the increase, inflation levels remain within a relatively moderate range, indicating controlled price pressures across key sectors of the economy, reported IANS.
Economists note that while the rise is gradual, it reflects underlying fluctuations in both food and commodity prices, which continue to influence overall inflation trends, reported IANS.
Among various commodities, precious metals witnessed the steepest price rise during March. Silver jewellery prices surged dramatically by 148.61 per cent, while gold jewellery recorded a sharp increase of 45.92 per cent compared to the same month last year.
This significant spike in jewellery prices has been attributed to global market trends, including rising demand and volatility in precious metal rates, which have a direct impact on domestic pricing.
Food inflation stood at 3.87 per cent in March, largely driven by an increase in the prices of certain vegetables such as tomatoes and cauliflower. However, the overall food basket presented a mixed trend, reported IANS.
Prices of essential items like onion, potato, and garlic registered a double-digit decline compared to March last year, providing some relief to consumers. Pulses also became more affordable, with arhar (tur dal) prices falling by 9.56 per cent and chickpeas declining by 7.87 per cent during the same period, reported IANS.
The Reserve Bank of India (RBI) has projected CPI inflation at 4.6 per cent for the financial year 2026-27. According to RBI Governor Sanjay Malhotra, the outlook is shaped by both supportive and risk factors, reported IANS.
He noted that a strong rabi crop has improved short-term food supply prospects, helping contain inflationary pressures. At the same time, rising global energy prices have led to increased costs of fuels such as petrol, LPG, and diesel used for industrial purposes, reported IANS.
The RBI has cautioned that persistent geopolitical tensions in West Asia and the possibility of El Niño conditions could pose upside risks to inflation. These factors may disrupt energy markets and impact the southwest monsoon, potentially affecting agricultural output.
Core inflation, which excludes food and fuel, is projected at 4.4 per cent for 2026-27. When precious metals are excluded, it is expected to remain even lower, indicating that underlying inflationary pressures are likely to stay contained, reported IANS.
Overall, while inflation has inched up slightly in March, a combination of stable core inflation and improved food supply outlook offers cautious optimism for the months ahead.
(With inputs from IANS)
