Food Inflation Hits 8.7% in April — Tomatoes Up 120%, Edible Oils Up 34%: What the CPI Data Shows

India's Consumer Price Index for April 2026, released by the Ministry of Statistics on May 3, showed headline retail inflation at 5.4% — within the RBI's 2–6% tolerance band. But the food and beverages sub-index told a starkly different story: food inflation hit 8.7%, the highest reading since February 2025. The spike is driven by three commodities — tomatoes (up 120% year-on-year), onions (up 67%) and edible oils (up 34%) — that together account for a disproportionate share of the household food basket for lower-income families.

Key Commodities Driving the Spike

“Food inflation at 8.7% is not transitory when it has been above 6% for four consecutive months. The RBI's models tend to under-weight food inflation because it is 'supply-side' — but for the bottom 40% of households, food is 55% of the consumption basket.”

— Dr. Mridul Saggar, former Executive Director, Reserve Bank of India

The RBI's Dilemma

The Monetary Policy Committee met on May 6–7 and held the repo rate steady at 6.25%. The RBI Governor described food inflation as 'predominantly supply-driven and expected to moderate as summer crops arrive.' However, three of the six MPC members flagged that edible oil prices — linked to global palm oil markets and rupee depreciation — are not a seasonal phenomenon and may persist through Q2 FY2027. The government's decision to suspend import duty on edible oils until August is expected to provide partial relief, with analysts projecting an 8–12% retail price reduction over 6–8 weeks.