India's June inflation rises to 4.38% retail and 9.87% wholesale

India’s consumer price index (CPI) jumped to 4.38% year‑on‑year in June 2026, the first breach of the Reserve Bank of India’s 4% target in 16‑17 months. The rise was driven by food inflation at 5.32% and higher fuel and transport costs (transport inflation 4.31%). Prices of personal‑care items and jewellery surged, with silver jewellery up 133% and gold jewellery up 37%.

The All‑India Wholesale Price Index (WPI) accelerated to 9.87% in June, up from 9.68% in May. Primary articles rose to 7.0% year‑on‑year, the food index to 6.14%, while fuel‑and‑power inflation eased to 27.41%. The increase reflects higher prices for mineral oils, basic metals, chemicals and food commodities.

The RBI kept its repo rate unchanged at 5.25% but raised its FY27 inflation outlook to 5.1%, signalling possible future rate hikes. The data have prompted political criticism, with opposition leaders accusing the government of burdening ordinary families with rising prices.