FX.co ★ India Inflation Rises to 1-Year High

India’s annual inflation rate climbed to 3.4% in March 2026 from 3.21% in February, its highest level in over a year, though still slightly below the median market forecast of 3.48%. This was only the third release under India’s revised CPI series, which updated the expenditure weights of goods in the index based on the Household Consumption Expenditure Survey from two fiscal years earlier, resulting in a higher weight for non-food items in the consumer basket. Food inflation accelerated to 3.87% from 3.47% in the previous month. At the same time, inflation edged up for restaurants and accommodation (2.88% vs. 2.73% in February), while transportation prices were flat (vs. -0.05% previously), despite sharp increases in global wholesale energy prices. On a monthly basis, consumer prices in India rose by 0.26%.