#CPIWatch

June CPI at 2.10% vs estimates of 2.5%

June food inflation fell 1.06% vs a 0.99% rise in May.

The Reserve Bank of India is mandated to not let inflation fall below 2% or rise above 6% for three consecutive quarters.

Prices of cereals rose 3.73% on-year against a 4.77% increase in May, while those of pulses declined 11.76% compared to a 8.22% fall in May.

Easing inflation has given room to the RBI to focus on growth. In June, the central bank cut its repo rate by a larger-than-expected 50 basis points.

It also trimmed its fiscal 2026 projection for retail inflation to 3.7% from 4% earlier, citing a strong harvest and the early arrival of monsoon rains.

"Given this print and ongoing momentum in food inflation, the annual average inflation for FY26 is likely to be lower than 3.7%.# #