The retail inflation based on Consumer Price Index (CPI) rose to 3.40% (Provisional) in the month of March 2026 as compared to 3.21% in February 2026 on higher food prices. This represents the second consecutive month of an increase in inflation. Besides, rural inflation increased to 3.63% in March from 3.37% in February, while urban inflation increased to 3.11% in March from 3.02% in February. Despite the uptick, the retail inflation remained within the Reserve Bank of India’s (RBI's) medium-term target of 4% with a 2% margin either way, making the board target inflation range between 2-6%. Meanwhile, the index value for CPI for rural, urban and combined stood at 105.01, 104.62 and 104.84, respectively, for the month of March 2026.

Food inflation, measured by the Consumer Food Price Index (CFPI), jumped to 3.87% (Provisional) for March 2026 as compared to 3.47% in February 2026. Corresponding inflation rates for rural and urban stood at 3.96% and 3.71%, respectively in March 2026, as compared to 3.46% and 3.48%, respectively in February 2026. Index value for CFPI for rural, urban and combined stood at 104.01, 104.38 and 104.14, respectively, for March 2026. Besides, Housing inflation rate for the month of March 2026 is 2.11% (Provisional) and the corresponding inflation rates for rural and urban are 2.54% and 1.95%, respectively.

Top five key items with low inflation at All India combined level in March 2026 are Onion at (-)27.76% as against (-)28.20% in February 2026, Potato at (-)18.98% in March 2026 as against (-)18.47% in February 2026, Garlic at (-)10.18% in March 2026 as against (-)31.10% in February 2026, Arhar, Tur at (-)9.56% in March 2026 as against (-)16.00% in February 2026, and Peas, chickpeas at (-)7.87% in March 2026 as against (-)8.26% in February 2026.

Top five key items with high inflation at All India combined level in March 2026 were Silver Jewellery at 148.61% as against 160.88% in February 2026, Gold/Diamond/Platinum Jewellery at 45.92% in March 2026 against 48.17% in February 2026, Coconut: copra at 45.52% in March 2026 against 46.16% in February 2026, Tomato at 35.99% in March 2026 against 45.18% in February 2026, and Cauliflower at 34.11% in March 2026 against 43.76% in February 2026.

Moreover, inflation in Food and beverages increased to 3.71% in March 2026 against 3.35% in February 2026, inflation in Paan, tobacco and intoxicants increased to 4.23% in March 2026 against 3.49% in February 2026, inflation in Housing, water, electricity, gas and other fuels increased to 1.97% in March 2026 against 1.52% in February 2026. However, inflation in Clothing and footwear came down marginally to 2.75% in March 2026 against 2.81% in February 2026.