India's Inflation Picked Up in April as Oil Prices Rose

By Kimberley Kao

India's consumer-price growth accelerated in April, as elevated oil prices and unfavorable base effects stoked inflationary pressures.

The consumer-price index rose 3.48% in April, compared with a 3.40% increase in March, government data showed. That marked the highest inflation reading since February 2025. The reading missed economists' expectations for a 3.85% increase in a Wall Street Journal poll.

Higher energy costs stemming from the Middle East are fueling price-growth momentum in economies like India that rely on oil and gas imports.

Inflation in India will likely accelerate in the coming months, driven by the oil price shock and a broader rise in input costs, Dhiraj Nim, an economist at ANZ Research, said in a note ahead of the data release.

Brent crude prices have consistently breached the $100 a barrel-mark in recent weeks, raising concerns that inflation could exceed the Reserve Bank of India's 4.6% projection for the fiscal year ending March 2027.

The central bank kept interest rates unchanged last month and maintained a neutral policy stance, taking time to assess the impact of persistent geopolitical tensions and higher commodity prices on domestic growth and inflation.

Policymakers are also monitoring the rupee closely amid concerns over capital outflows and India's rising import bill. The Indian currency has come under pressure in recent weeks because of the country's sensitivity to oil prices and external financing risks.

Prime Minister Narendra Modi recently urged citizens to reduce fuel consumption, foreign travel and gold purchases in a bid to protect foreign-exchange reserves and support the rupee.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

May 12, 2026 07:04 ET (11:04 GMT)