Retail inflation increased from 3.21% in February 2026 to 3.4% in March 2026.
It showing a slight rise in prices of goods and services consumed by households.
It is measured using the Consumer Price Index (CPI), which includes items like food, fuel, housing, and other essential services.
The increase was mainly driven by higher food inflation, especially due to rising prices of vegetables, coconut, and some precious items like gold and silver.
The data is based on the new CPI series with 2024 as the base year, which reflects current consumption patterns more accurately.
Global factors such as tensions in West Asia also impacted supply chains and increased transportation and commodity costs.
Despite the rise, inflation remains within the target range of the Reserve Bank of India (4% ± 2%), indicating that inflation is moderate and under control.