The Indian inflation rate surged to 4.38% in June of 2026 from 3.93% in the earlier month, the highest since December of 2024, and slightly above market expectations of 4.3%. Prices rebounded sharply for transportation (4.31% inflation rate) after a marginal deflation rate observed in the previous month, suggesting that the energy shock from the war in the Middle East has started its delayed transmission to Indian consumer prices. Meanwhile, food inflation, which is a large part of the domestic consumer basket, rose to 5.32% from 4.78% in May, amid a 50.4% surge for ginger and a 31.92% increase for tomatoes. In turn, inflation was lower for housing and utilities (1.99%). From the previous month, the Indian CPI rose 1.03%, the most since January 2025.