India Retail Inflation June 2026: CPI Rises to 4.38%
Why in the news
NSO’s CPI release for June 2026 showed consumer inflation moving up to 4.38% (about 4.4%) from 3.93% a month earlier. It was the first time the new 2024-base series went past the RBI’s 4% target.
Key facts
- The CPI is released by the National Statistics Office under MoSPI.
- The new series has base year 2024 and took effect in January 2026.
- Food inflation reached 5.32%, the highest in this series.
- Transport inflation was 4.31% after petrol and diesel price hikes.
What pushed prices up
| Driver | Detail |
|---|---|
| Food | Ginger, tomato, raisins and monacca became much costlier |
| Fuel | Global crude rose on West Asia tensions; fuel hikes lifted transport costs |
| Weak monsoon | 42.8% rainfall deficit in June 2026 hurt farm output and supply |
| Precious metals | Safe-haven buying lifted jewellery prices; silver jewellery inflation was 133.21% |
About CPI
- Measures retail price changes faced by consumers, across rural and urban areas.
- The RBI relies on it for monetary policy.
- The Food and Beverages group has the largest weight, about 45.86%.
Exam angle
- Compiler: NSO (MoSPI); user: RBI for policy decisions.
- Numbers: 4.38% in June versus 3.93% in May; base year 2024.
- Likely traps: base year and the effective month of the new series.