Desk Correspondent , New Delhi - India’s retail inflation, measured by the Consumer Price Index (CPI), rose to 3.48% in April, up from 3.40% in March, primarily driven by a significant surge in food prices. Data released by the Ministry of Statistics and Programme Implementation on Monday revealed that while the figure remains within the Reserve Bank of India’s tolerance band, the uptick reflects persistent pressure on household budgets across both rural and urban sectors.

The primary catalyst for this acceleration was the food and beverages segment, which saw a notable jump in costs for vegetables, pulses, and cereals. Food inflation specifically climbed to 4.20% during the month, compared to 3.87% in the preceding period. Economists suggest that unseasonal weather patterns and supply chain disruptions have impacted agricultural output, leading to higher procurement costs for essential commodities.

While the current inflation rate is higher than the previous month, it remains below the 4% medium-term target set by the central bank. Market analysts indicate that the RBI may maintain a cautious stance on interest rates in its upcoming policy review to balance growth with price stability. However, if food prices continue their upward trajectory due to heatwaves or monsoon uncertainties, further inflationary pressure is expected in the coming quarter.