RBI Says Fuel Inflation Stayed Modest by June 2026 as Core CPI Ex-Precious Metals Held at 2.5%
Updated
Updated · Business Standard · Aug 19
RBI Says Fuel Inflation Stayed Modest by June 2026 as Core CPI Ex-Precious Metals Held at 2.5%
3 articles · Updated · Business Standard · Aug 19
Summary
June 2026 fuel inflation remained modest in India because a sharp rise in global energy prices saw only limited pass-through to domestic retail prices, according to RBI policy minutes.
RBI said that muted transmission persisted despite two quarters of terms-of-trade shocks from surging crude prices and a weaker Indian rupee.
CPI inflation still edged above the RBI’s 4% target by a small margin, but core inflation stayed below 4%.
Core inflation excluding precious metals was much lower at 2.5%, reinforcing the central bank’s view that imported price pressures had not broadly spread through the economy.