India's retail inflation rose to 4.38 per cent in June driven by higher food prices, as per the data released by the Ministry of Statistics and Programme
Implementation (MoSPI) on Monday. Corresponding inflation rates for rural and urban are 4.74% and 3.92%, respectively. The year-on-year inflation rate based on All India Consumer Food Price Index (CFPI) for the month of June, 2026 over June, 2025 is 5.32%. Among food items, ginger recorded the sharpest increase in prices, with inflation rising to 50.41 per cent in June from 32.50 per cent in May. Further, tomato inflation stood at 31.92 per cent year-on-year, while raisin and monacca inflation stood at 20.52 per cent. Inflation in the food and beverages category stood at 5.05 per cent, while restaurants and accommodation services recorded inflation of 6.91 per cent. Inflation in personal care, social protection and miscellaneous goods and services remained elevated at 16.72 per cent. The year-on-year Housing inflation is 2.10% and the corresponding inflation rates for rural and urban are 2.66% and 1.90%, respectively. "The increase in retail inflation during June 2026 is primarily attributable to higher food prices. While headline inflation remains within the Reserve Bank of India's tolerance band, sustained pressures in food inflation warrant continued policy attention," said Rajeev Juneja, President, PHDCCI. Sujan Hajra, Chief Economist & Executive Director, Anand Rathi Group said, "India's CPI inflation accelerated to 4.4% in Jun'26, up sharply from 3.9% in May'26, and marginally above the market consensus of around 4.3%. The uptick was primarily driven by higher food and fuel prices. Food inflation rose to 5.3% from 4.8% in the previous month, largely due to a pickup in cereal prices. Meanwhile, fuel inflation edged up to 2.0% from 1.7%, reflecting the recent increase in global crude oil prices. Price pressures also remained visible in services such as restaurants and accommodation during the month. Looking ahead, food inflation remains vulnerable to weather-related risks, including the possibility of El Niño affecting agricultural output." "While headline inflation has moved above the RBI's 4% medium-term target, it remains comfortably within the central bank's 2%-6% tolerance band. Given the evolving inflation dynamics, we expect the MPC to remain watchful and maintain a data-dependent approach before taking any further policy action."
