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- India Inflation | India Retail Inflation Rate March 2026 Update Israel Iran War
New Delhi38 minutes ago
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Retail inflation has increased to 3.4% in March. Earlier in February it was 3.21%. These figures have been released today, April 13.
This increase in inflation has happened at a time when there is a war going on between Israel, America and Iran. If the war continues for a long time, inflation may increase further.
Reason for increase in inflation – increase in prices of food items
The biggest reason for increase in inflation is the increase in prices of food items. Food inflation increased to 3.71% in March. This figure was 3.47% in February.
Inflation was slightly lower in cities as compared to rural areas. Rural inflation increased to 3.63% from 3.37% in February, while urban inflation increased to 3.11% from 3.02%.
Personal care items became the most expensive by 18.65%
| Sector | Inflation Rate (%) |
| Personal care, social protection and other items | 18.65 |
| Paan, tobacco and drugs | 4.23 |
| Food and Beverages | 3.71 |
| Education Services | 3.30 |
| clothes and shoes | 2.75 |
| Restaurant and Hotel Services | 2.88 |
| Entertainment, Sports and Culture | 2.28 |
| Health | 1.75 |
| housing, water, electricity and gas | 1.97 |
| Home Appliances and Maintenance | 1.39 |
| information and communication | 0.33 |
| transport | 0.00 |
Potato became expensive, onion and garlic became cheaper in March
| Number | object | Inflation % (February, 2026) | Inflation % (March, 2026) |
| 1 | Onion | -28.20 | -27.76 |
| 2 | Potato | -18.47 | -18.98 |
| 3 | garlic | -31.10 | -10.18 |
| 4 | Arhar, Toor Dal | -16.00 | -9.56 |
| 5 | peas, gram | -8.26 | -7.87 |
Inflation rate of silver jewelery decreased to 148.61%
| Number | object | Inflation % (February, 2026) | Inflation % (March, 2026) |
| 1 | silver jewelry | 160.88 | 148.61 |
| 2 | gold/diamond/platinum | 48.17 | 45.92 |
| 3 | Coconut: Copra | 46.16 | 45.52 |
| 4 | Tomato | 45.18 | 35.99 |
| 5 | Cauliflower | 43.76 | 34.11 |
Inflation is being measured in a new way, OTT included
This is the third figure released under the new inflation formula (2024 base year). The government has also made changes in the basket of measuring inflation.
The weightage of food items has been reduced from 45.9% to 36.75%, while the weightage of housing and electricity-gas has been increased.
What removed: Old items like VCRs and audio cassettes have been removed.
What connected: Expenses like OTT subscription, digital storage are included.
How does inflation increase and decrease?
The rise and fall of inflation depends on the demand and supply of the product. If people have more money they will buy more things. This will increase the demand for things and if there is no supply, their prices will increase. Whereas if demand is less and supply is more then inflation will be less.
What does 3.4% inflation rate mean?
1. Comparison with previous year (year-on-year)
When we say that inflation is 3.4% in March 2026, it means that we are comparing it with March 2025. That’s a whole year’s worth of change. 3.4% is an average number called the ‘Consumer Price Index’. This includes hundreds of things in your life:
The prices of some things may have increased a lot (e.g. silver jewelery became costlier by 160%).
The prices of some things may have also decreased (e.g. garlic became 31% cheaper).
When all this was added together, average spending increased by 3.4%.
2. An item of ₹100 is now worth ₹103.4
Its mathematics is very simple. If you bought an item like ration for ₹ 100 in March 2025, then the same item will cost ₹ 103.4 in March 2026.
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