India's retail inflation climbed to 4.38% in June 2026, its highest level in 18 months, as a delayed monsoon sent vegetable prices soaring and global energy costs fed through to transport. The RBI held rates steady but raised its own inflation forecast — signalling more price pressure ahead.

Food inflation remained a key economic concern in 2025, particularly in India, where food accounts for a large share of household expenditure. After periods of sharp volatility in earlier years, 2025 stood out as a year of gradual normalisation. This moderation was driven largely by strong agricultural output, comfortable buffer stocks, favourable weather conditions, and policy measures aimed at stabilising both supply and prices.