India’s annual inflation rate accelerated to 4.38% in June 2026 from 3.93% in May, marking the highest reading since December 2024 and coming in slightly above market expectations of 4.3%.
Transport prices swung sharply higher, recording a 4.31% inflation rate after a marginal deflation in the previous month. This shift indicates that the energy shock stemming from the war in the Middle East has begun to feed through with a delay into Indian consumer prices.
Food inflation, which constitutes a substantial share of the domestic consumer basket, also picked up, rising to 5.32% from 4.78% in May. The increase was driven in part by a 50.4% surge in ginger prices and a 31.92% jump in tomato prices.
By contrast, inflation eased in the housing and utilities category, slowing to 1.99%.
On a monthly basis, the consumer price index (CPI) climbed 1.03% in June, the largest rise since January 2025.
