Business EconomyPosted at: Jun 12 2026 6:35PM

New Delhi, June 12 (UNI): Consumer Price Inflation (CPI) rose to 3.9 percent in May from 3.5 percent in April, led by broad-based pressures from food and non-food segments, with the latter contributing more significantly, said Dipti Deshpande, Principal Economist of Crisil Ltd.
She noted that food inflation contributed 170 basis points (bps) to the headline, while that from non-food was greater at 230 bps.
"Rising input costs for producers reflected in the Wholesale Price Index inflation of 8.3 percent in April are now increasingly feeding into consumer prices. The impact of the West Asia conflict, which has now entered its fourth month in June, is therefore starting to percolate household budgets."
Food inflation rose to 4.8 percent in May from 4.2 percent in April as persistent high temperatures drove up vegetable prices, dairy products and eggs.
Non-food inflation increased to 3.5 percent from 3.1 percent.
"Part of the estimated 36 bps direct impact on CPI from the cumulative Rs 7.5/litre hike in petrol and diesel prices in May is already visible, with the remaining pass-through expected in June. Core inflation is also showing signs of pressure from higher energy and other input costs, although GST rationalization may offer a partial near-term offset," she said.
Crisil expects CPI inflation to rise to an average 5.1 percent this fiscal from 2.0 percent last fiscal due to higher fuel prices, currency depreciation, second-round effects and potentially weak rainfall.
The Reserve Bank of India will likely look through these supply-side shocks while keeping a close watch on inflation expectations.
UNI SAS AKU

Please log in to get detailed story.