India retail inflation climbs to 3.93% in May as food, fuel costs bite
CPI quickened from 3.48% in April but stayed below RBI's 4% target for a 16th straight month. Food inflation hit 4.78%, with tomato prices surging 48.43%. Repo rate held at 5.25%; FY27 forecast pegged at 5.1%.
What happened
India's retail inflation rose to 3.93% in May from 3.48% in April on higher food and fuel costs, staying below RBI's 4% target for the 16th straight month. Food
Key facts
- 3.93% May CPI
- 3.48% April CPI
- 4% RBI target
- 4.78% food inflation
- 5.1% FY27 forecast
- 5.25% repo rate
- 48.43% tomato price rise
Why this matters
Persistent food and fuel volatility strengthens the case for bolt-on acquisitions in private-label staples and cold-chain logistics to insulate sourcing economics from cyclical CPI swings.