India: CPI inflation rises in May'26; spice basket shows mixed price trends

• Ginger inflation jumps to 32.49% y-o-y on tighter arrivals
  
  
• Comfortable supply keeps jeera in deflation at (-)4.59%
  
  

India's retail inflation, measured by the Consumer Price Index (CPI), increased to 3.93% y-o-y in May 2026 from 3.48% in April, while food inflation rose to 4.78% y-o-y from 4.20%, according to government data. From the spices perspective, the inflation basket reflected contrasting market fundamentals, with ginger prices strengthening sharply while cumin (jeera) continued to remain under pressure.

Ginger gains momentum

Ginger inflation accelerated to 32.49% in May from 14.36% in April, making it one of the fastest-rising food commodities in the inflation basket. Market participants attributed the increase to relatively tighter arrivals in key producing regions and sustained domestic consumption demand. The sharp m-o-m acceleration suggests that supply availability remained insufficient to fully meet market requirements during the period.

Jeera remains under pressure

In contrast, jeera recorded inflation of (-)4.59% in May, indicating prices remained lower than the corresponding period last year. The continued deflation reflects comfortable supply conditions following improved production and adequate stock availability in major trading centres. Traders noted that export demand has provided some support, but not enough to offset the impact of abundant supplies.

Outlook

The widening gap between ginger and jeera price trends underscores the diverse supply-demand fundamentals within India's spice sector. While ginger prices are likely to remain firm in the near term if arrivals stay limited, jeera may continue to face pressure unless export demand improves significantly or inventories tighten. Rising food inflation could keep market attention focused on key spice commodities that have a meaningful impact on household consumption patterns.