India's retail inflation, measured by the Consumer Price Index (CPI), rose to 4.38% in June 2026 from 3.93% in May 2026, according to data released by the National Statistics Office (NSO) under the Ministry of Statistics on Monday, 13 July 2026. The June reading crossed the Reserve Bank of India's (RBI) median target of 4%, though it stayed well within the tolerance band of 2% to 6%. This was the first time retail inflation surpassed the 4% mark under the new CPI series, which came into effect in January 2026.
Food inflation, tracked through the Consumer Food Price Index, climbed to 5.32% in June from 4.78% in May, driving much of the increase. Rural inflation stood at 4.74%, higher than urban inflation at 3.92%. Among states, Telangana recorded the highest inflation at 6.36%, while Mizoram registered the lowest at 1.63%.
The base year of the new CPI series is 2024. The top five items with high inflation in June were silver, gold, diamond and platinum jewellery, along with ginger, tomato and raisin. On the other side, the items with the lowest inflation were potato, peas, motor car and jeep, cumin (jeera), and motorcycle and scooter.
Retail inflation is a key input for the RBI's Monetary Policy Committee, which uses CPI as its nominal anchor while setting interest rates. A reading above the 4% median target, even within the band, signals price pressure that policymakers watch closely, particularly the food component that weighs heavily on household budgets.