CPI INFLATION STILL BELOW 4% BUT EXPECTED TO PEAK IN OCTOBER; NO RATE CUT EXPECTED IN AUGUST AS OF NOW

SBI Research
CPI inflation increased from 3.48% in April 2026 to 3.93% in May 2026, largely reflecting the pass-through of higher fuel prices and supply-side disruptions. The impact of increased petrol and diesel prices was clearly visible, with transport inflation rising by 176 bps to 1.8% in May, while a slight LPG shortage pushed restaurants and accommodation services inflation up by 154 bps to 5.7% from 4.2% in April. Inflation in the personal care division also increased by almost 80 bps, driven by a moderate rise in gold and silver prices. Core CPI (ex food/fuel) also increased slightly to 3.84% in May’26.

Add a Comment

Recent Blogs


Gold is not a 2026 story; may be 2027

G. CHANDRASHEKHAR, Advisor, ERTF 

Gold has been one of the best-performing assets in recent years. However, since the Persian Gulf war has led to closure of the

Read More

El Nino may lower harvest; but not compromise food security

G. CHANDRASHEKHAR, Advisor, ERTF 

Southwest monsoon broke over the Kerala coast June 4 and is advancing northward. The season runs for four months from June to S

Read More