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, government data showed.The CPI inflation rate in May was 4.25% in rural areas and 3.53% in urban areas. Food inflation was recorded at 4.85% in rural India and 4.66% in urban India.Housing inflation in May was 2.12%, rural housing inflation was 2.73% and urban housing inflation was 1.91%.Among major items, silver jewelery recorded the highest inflation rate of 155.23% in May, up from 144.36% in April. Inflation in tomatoes rose to 48.43% from 35.26%, while inflation in gold, diamond and platinum jewelery stood at 40.93%.Inflation of ginger was recorded at 32.49%, down from 14.36% in April, while inflation of raisins (raisins) and monacca was recorded at 21.97%.Potato prices, on the other hand, remained sharply lower than a year ago, with inflation at (-)23.71%. The inflation rate of peas was recorded at (-)11.47%, while the inflation rate of motor cars and jeeps was recorded at (-)7.19%. Inflation rates of jeera (jeera) and motorcycles and scooters were recorded at (-)4.59% and (-)3.56% respectively.Commenting on the data, Sujan Hazra, chief economist and executive director, Anand Rathi Group, said the more than 40 basis-point increase in retail inflation was largely expected.“A surge of over 40 basis-points in retail inflation in May 2026 was largely expected. The impact of higher import duties on gold as well as food prices is largely due to the rise in prices. In contrast, increased crude oil prices limited the penetration of domestic petroleum products and gas tariffs. “Both food and fuel inflation are likely to rise in the coming months,” Hazra said.He said the main issue would be whether higher fuel costs start impacting transportation, logistics and other input costs.“The more important question is whether higher fuel costs begin to generate broader second-round effects through transportation, logistics and other input costs. That transmission will need to be closely monitored before firm conclusions can be drawn on the inflation outlook. We assess that headline retail inflation could exceed 6% at some point in the next six months. “Nevertheless, the Reserve Bank of India may refrain from adopting a decisively accommodative stance, provided that core inflation remains around 4% and inflationary pressures do not become widespread,” he said.The National Statistical Office (NSO) said it has collected price data from 1,407 urban markets, including online markets, and 1,465 villages across states and union territories. The response rate during May was 100% in both rural and urban markets.The next CPI inflation data for June 2026 will be released on July 13.