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CPI Inflation Rises to 4.38% in June, Food Inflation at 5.32% - RBI MPC Faces Tough Choice Ahead of August Meeting

Target:UPSC GS-IIIMPSCBankingSSC GATeachingPrelims HighMains MediumStatic GK Link
14 Jul 2026
~2 min
Source: Indian Express
Key Data:CPI 4.38%Food inflation 5.32%Monsoon deficit 19.3%Kharif sowing down 16%Brent crude up 7.5%
Bodies:RBIMPCECBUS Fed
Practice MCQs from today's news ▸
What This Article Covers

1.CPI inflation in June stood at 4.38%, up from 3.93% in May, driven by food, transport, and restaurant segments.

2.Food inflation rose to 5.32% with ginger, tomato, and raisin seeing high prices; monsoon deficit of 19.3% and 16% drop in kharif sowing add uncertainty.

3.Global central banks (ECB and Fed) are tightening, and Brent crude spiked 7.5% in 5 days due to West Asia tensions, complicating the MPC's August decision.

The Big Picture
Prelims · HighMains · Medium

Retail inflation rose to 4.38% in June, driven by food (5.32%) and transport costs. With monsoon 19.3% below normal and kharif sowing down 16%, the RBI MPC faces a complex decision at its August meeting amidst global rate hikes by ECB and Fed.

Exam Lens

Quick Exam Facts From News

CPI Inflation (June)4.38%
Food Inflation (June)5.32%
Monsoon Deficit (since June 1)19.3% below normal
Kharif Sowing Decline16% vs last year
RBI's Inflation Projection (Quarter)4.2%
Brent Crude Rise (5 days)7.5%

1-Minute Revision

  • ›CPI Inflation (June): 4.38%
  • ›Food Inflation (June): 5.32%
  • ›Target this Data: CPI inflation June 2026 = 4.38%, food inflation = 5.32%
  • ›Target this Nodal Body: RBI's Monetary Policy Committee (MPC) – next meeting in August
  • ›Target this Factor: 19.3% below normal monsoon rainfall (since June 1) and 16% decline in kharif sowing

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

Which body is responsible for setting the repo rate in India to achieve the inflation target?

Q2Statement-basedHard

Consider the following statements regarding the recent inflation data:

1. The CPI inflation in June 2026 stood at 4.38%, up from 3.93% in May.

2. Food inflation in June was 5.32%, with ginger, tomato, and raisin witnessing high inflation.

3. The RBI's most recent projection for the quarter was 4.2%, which was lower than the actual quarterly average of 3.9%.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the article, what was the cumulative rainfall deficit from June 1 in the current monsoon season?

Q4Application/ImpactMedium

Why did restaurant inflation see a sharp increase according to the article?

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