Restaurant inflation jumps to 4.2% in April as commercial LPG squeezes eateries

April CPI edged to 3.48% from 3.4%, but restaurant and accommodation prices rose 4.2% YoY (vs 2.9% in March) with a sharp 1.5% MoM print. Commercial LPG costs are biting F&B operators even as headline inflation stays benign. RBI sees FY27 CPI at 4.6%; rate-hike risk builds from October.

— FiledFri, 15 May, 2026, 07:19 IST·First seen Fri, 15 May, 2026, 06:54 IST·Source Indian Express · Business

What happened

India CPI · April retail inflation edged up to 3.48%, but restaurant and accommodation prices jumped 4.2% YoY on commercial LPG cost pressures, squeezing

Key facts

  • 3.48% April CPI
  • 3.4% March CPI
  • restaurant inflation 4.2% YoY April vs 2.9% March
  • MoM 1.5% restaurant prices
  • core inflation 3.7%
  • rural 3.74%
  • urban 3.16%
  • RBI FY27 CPI forecast 4.6%
  • repo rate 5.25%
  • HSBC FY CPI 5.6%

Why this matters

Input-cost stress on smaller F&B operators opens a window for consolidation plays and distressed acquisitions of regional chains lacking pricing power or fuel-cost scale.