India's headline retail inflation, as measured by the consumer price index (CPI), increased to 3.48% in April from 3.40% in March, according to the National Statistics Office. This rise marks the fourth consecutive increase and is the highest recorded under the new CPI series with 2024 as the base year. The April figure is below the 4% target set by the Reserve Bank of India and softer than the 3.8% anticipated in a Bloomberg poll of economists. The uptick was largely driven by food prices, with the Consumer Food Price Index rising to 4.20% from 3.87% in March. Notably, tomato prices soared by 35.28%, while potato prices dropped by 23.69%. Rural inflation was higher than urban inflation, with overall rural CPI at 3.74% compared to 3.16% in urban areas. Analysts caution that inflationary pressures could escalate due to rising oil prices and the effects of El Niño, potentially leading the Reserve Bank of India to implement rate hikes in the near future.