US-Iran war impact: Retail inflation rises marginally to 3.93% in May, food inflation edges up to 4.78%

Retail inflation, measured by the Consumer Price Index (CPI), rose to 3.93% in May 2026 from 3.48% in April, according to data released by the government on Friday.Food inflation also increased during the month, with the Consumer Food Price Index (CFPI)-based inflation rate rising to 4.78% from 4.20% in April, the government data showed.The CPI inflation rate stood at 4.25% in rural areas and 3.53% in urban areas in May. Food inflation was recorded at 4.85% in rural India and 4.66% in urban India.Housing inflation for May was 2.12%, with rural housing inflation at 2.73% and urban housing inflation at 1.91%.Among key commodities, silver jewellery recorded the highest inflation rate at 155.23% in May, up from 144.36% in April. Tomato inflation accelerated to 48.43% from 35.26%, while inflation in gold, diamond and platinum jewellery stood at 40.93%.Ginger registered inflation of 32.49%, up from 14.36% in April, while raisins (kishmish) and monacca recorded inflation of 21.97%.On the other hand, potato prices remained sharply lower than a year ago, with inflation at (-)23.71%. Peas recorded inflation of (-)11.47%, while motor cars and jeeps saw inflation of (-)7.19%. Cumin (jeera) and motorcycles and scooters registered inflation rates of (-)4.59% and (-)3.56%, respectively.The National Statistical Office (NSO) said it collected price data from 1,407 urban markets, including online markets, and 1,465 villages across states and Union Territories. The response rate was 100% in both rural and urban markets during May.The next CPI inflation data for June 2026 will be released on July 13.