India's retail inflation rises to 4.38% in June 2026
India's retail inflation climbed to 4.38% in June 2026, crossing the Reserve Bank of India's midpoint target of 4% for the first time since January 2025.
Prices have been steadily rising since January, and this latest jump was even higher than what most economists expected, so daily expenses might feel a bit tighter for everyone.
RBI expects prices rising, growth cooling
With inflation heating up, the Reserve Bank of India now expects prices to keep rising through the current fiscal year, partly because of weak monsoon rains and expensive global energy.
They have kept interest rates steady for now, but are keeping a close watch.
Meanwhile, India's economic growth is set to cool off a bit, from 7.7% in FY26 (the previous fiscal year) to a projected 6.6% in FY27 (the current fiscal year, Apr 2026-Mar 2027), as higher prices and global uncertainties make things trickier for both spending and investment.