India June Inflation Hits 4.38%

India's retail inflation has reached a 17-month high of 4.38% in June, surpassing the Reserve Bank of India's (RBI) inflation target of 4%, according to various reports. This is the first time the target has been breached in 17 months.

The inflation was driven by a jump in prices of silver and gold, as well as food prices. The food inflation rose to 5.32% in June.

This development sets the stage for potential rate hikes by the RBI, according to Reuters. However, the exact timing and extent of the hike are still unclear. Meanwhile, India has also launched its Producer Price Index to refine inflation data.

It is worth noting that the increase in inflation was not solely driven by India, as the global market was also affected by the Iran war and deficient rainfall .