India’s retail inflation accelerated to 4.38% in June, up from 3.93% in May, driven by food inflation crossing the 5% mark. According to the latest Consumer Price Index (CPI) data, this is the highest retail inflation reading since December 2024, when inflation stood at 5.22%.
Food inflation rose to 5.32% in June from 4.78% in May, marking its highest level since January 2025, when it was recorded at 5.97%. Rural areas witnessed higher food inflation at 5.45%, compared with 5.09% in urban areas.
Among food items, potatoes, peas and cumin recorded the sharpest decline in inflation. Potato prices fell 20.34% year-on-year, although the decline was less steep than -23.71% recorded in May. Pea inflation eased to 9.67% in June from 11.47% a month earlier. Cumin prices declined 3.75% year-on-year, compared with an inflation rate of 4.59% in May.
On the other hand, ginger and tomatoes remained the biggest contributors to food inflation. Ginger prices surged 50.41% year-on-year in June, up from 32.50% in May. Tomato prices increased 31.92%, although the pace of inflation moderated from 48.43% recorded in May.
Inflation was also observed across several non-food categories. Prices of clothing increased by 3.64%, footwear by 0.54%, furniture and carpets by 3.27%, household appliances by 1.57%, utensils by 4.70%, and medical and healthcare products by 1.39%.