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India Retail Inflation Surpasses RBI Target in June

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India's retail inflation rose to 4.38% in June 2026, surpassing the RBI's 4.0% target for the first time since early 2025, driven by supply-side hikes in food prices. The core inflation without precious metals remained low at 3.45%.

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India Retail Inflation Surpasses RBI Target in June

India's retail inflation has surpassed the Reserve Bank of India's (RBI) medium-term target of 4.0% for the first time since early 2025. According to the latest data, retail inflation reached 4.38% in June 2026, up from 3.93% in May 2026. The increase was largely driven by supply-side hikes in food prices, which rose to 5.32% in June. However, the core inflation without precious metals remained low at 3.45%. The RBI had set a medium-term target of 4.0% for retail inflation, and the latest numbers suggest that the central bank may need to reassess its monetary policy stance. The data also highlights the ongoing impact of seasonal factors on food prices, which are expected to continue in the coming months.

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India's Retail Inflation Rises to 4.38% in June 2026

India's retail inflation has risen to 4.38% in June 2026, driven by a rise in food prices. The RBI's medium-term target for retail inflation is 4.0%. The retail inflation rate has been rising steadily since May 2026, when it stood at 3.93%. The rise in retail inflation is driven by a rise in food prices, particularly in the case of seasonal fruits and vegetables. The RBI has been monitoring the retail inflation rate closely and has taken steps to control it. The RBI has also been working with the government to control inflation and maintain economic stability. The government has also been taking steps to control inflation, including increasing the minimum support price for crops and implementing measures to control the prices of essential commodities.

Sahi

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