PIB TrackerRetail inflation eases to 4.38% in June — the first reading on the new 2024=100 CPI base
June 2026 retail inflation came in at 4.38% — comfortably inside the RBI's 2–6% band — in the first Consumer Price Index release rebased to 2024=100 (from 2012=100); food inflation was 5.32%, with potatoes and peas seeing sharp price falls.
What happened
- Retail (CPI) inflation was 4.38% year-on-year in June 2026 — within the RBI's 2–6% tolerance band.
- It is the first CPI release on the new base year 2024=100 (updated from 2012=100).
- Rural inflation was 4.74% and urban 3.92%; the CPI (General) index rose to 107.00 (from 105.91 in May).
- Food (CFPI) inflation was 5.32% (rural 5.45%, urban 5.09%); housing inflation was 2.10%.
- Potato (−20.34%) and peas (−9.67%) saw the sharpest price falls; the rebasing refreshes the basket and weights.
For Prelims
- CPI: The Consumer Price Index — the headline retail-inflation measure (by MoSPI/NSO); the RBI targets CPI inflation, not WPI.
- Base year 2024=100: Rebasing (from 2012=100) updates the item basket and weights to reflect current spending — food's weight typically falls as incomes rise.
- Flexible Inflation Targeting: The RBI's mandate is CPI inflation of 4% (±2%), i.e. a 2–6% band, set by the government with the RBI.
- CFPI: The Consumer Food Price Index — food inflation, a volatile and politically sensitive component of CPI.
- MPC: The Monetary Policy Committee sets the repo rate to keep inflation near target; low inflation gives room to support growth.
- CPI vs WPI: CPI tracks retail (consumer) prices; the Wholesale Price Index (WPI) tracks wholesale/producer prices.
For UPSC: Use this for inflation and monetary policy — a benign 4.38% print within the RBI band, and the significance of rebasing the CPI to 2024=100 for measurement accuracy. Anchor flexible inflation targeting (4% ±2%), the CPI/CFPI structure, the MPC, and the food-inflation and base-effect dynamics.
What it is NOT: This is a monthly statistical release (provisional), not a policy decision. The 4.38% figure is retail CPI inflation (not WPI), and the '2024=100' change is a base-year update, not a change in the target band or methodology of targeting.
For Mains
Syllabus: GS3.1 · Linkage L2
Anchor
Price stability and measurement — benign retail inflation within the RBI band, on a modernised CPI base that better reflects consumption.
Substantiation (data)
June 2026 CPI inflation 4.38% (rural 4.74%, urban 3.92%) on the new 2024=100 base; CFPI 5.32%; housing 2.10%; potato/peas prices sharply lower; within the RBI's 2–6% band.
Exemplification
Rebasing to 2024=100 updating basket weights; food inflation and base effects as the swing factors in headline CPI.
Problematisation
Food-price volatility, weather/monsoon risk and imported inflation can quickly shift the print; rebasing also affects comparability of series.
Way-forward
Sustain supply-side management of food prices, monitor rebased series for trends, and keep monetary policy data-driven within the target band.
Position
Policy stance: flexible inflation targeting anchoring expectations while supporting growth when inflation is contained.
Deploys into: Indian economy — inflation, monetary policy and national statistics (GS3.1) · flexible inflation targeting (4% ±2%), the CPI/CFPI and base-year rebasing (2024=100), and the RBI's MPC.
Ministry of Statistics & Programme Implementation · 2026-07-13 · PRID 2284125 · PIB source ↗