The latest reading marks the first time since January 2026 that headline inflation has crossed the RBI's 4% target. Retail inflation had eased to 2.74% in January before gradually rising to 3.21% in February, 3.40% in March, 3.48% in April and 3.93% in May.

Retail inflation rises to 4.38% in June, driven by increased food prices, according to government data.