India CPI hits 3.93% in May as food inflation flares to 4.78%, squeezing QSR and grocery baskets
Food CPI rose 4.78% and restaurant/accommodation inflation hit 5.75% in May, with tomato up 48% and ginger up 32% YoY. LPG cylinders rose Rs 29, pressuring QSR menu economics and household grocery wallets even as RBI holds repo at 5.25% against a 5.1% inflation forecast.
What happened
RBI · India CPI inflation rose to 3.93% in May with food inflation at 4.78% and restaurant/accommodation prices up 5.75%, signaling input-cost pass-through
Key facts
- CPI 3.93% May
- Food CPI +4.78%
- Restaurant/accommodation inflation 5.75%
- Tomato +48% YoY
- Ginger +32% YoY
- LPG +Rs 29/cylinder
- Repo rate 5.25%
- RBI inflation forecast 5.1%
- Core inflation 3.9%
Why this matters
Distressed regional QSR and grocery chains squeezed by input shocks become attractive bolt-on targets for scaled players with hedged supply chains and pricing power.