Inflation breaches RBI target as patchy monsoon adds fresh risks
Consumer price index (CPI)-based retail inflation in India rose to 4.38% in June, surpassing the Reserve Bank of India's (RBI) target of 4% for the first time since January 2025. This increase, driven by rising food prices and erratic monsoon conditions, poses fresh risks to the economy as uneven rainfall is expected to tighten food supplies. Economists predict that inflation will remain elevated in July amid these challenges.