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.

Kerala’s economy is deeply tied to the Middle East. As the Middle East war continues, sectors like remittances, banking, tourism, and real estate face growing risk.