Industry Odisha Bureau, Jul 11: Owing to the impact of soaring food prices as well as the hikes in the prices of petrol and diesel, India’s retail inflation reportedly breached the medium-term target of the Reserve Bank of India (RBI) for the first time in June this year (2026) since January 2025.
Quoting the views and analyses made by noted economists, media reports stated that, “The Consumer Price Index (CPI)-based inflation stood at 4.2% in June in comparison to 3.9% in May this year (2026).”
Quoting the views and analyses made by noted economists, media reports also stated that, “While May experienced a partial impact of the price hikes of petrol and diesel that was done for four times between May 16 and June 1 this year, June bore the bigger brunt owing to the price hikes.”
Quoting the views and analyses made by noted economists, media reports also added that, “The food inflation, that accounts for nearly 35% of the CPI basket, also added to the woes.”
The economists have also reportedly cautioned that, “The El Nino-impacted below-normal monsoon, as predicted by the India Meteorological Department (IMD), is expected to raise further prices of vegetables and cereals, but the adequate food stocks and buffers as claimed and assured by the government could help in controlling a broad-based food inflation.”
