India's June Inflation at 5.32%, Above 4.3% Forecast, as Transport Costs Rise

India's headline year-on-year inflation rate for June exceeded economists' expectations of a 4.30% rise, according to a Reuters poll cited by Cnbc. The year-on-year inflation rate based on the All India Consumer Food Price Index reached 5.32% for the month, the Ministry of Statistics and Program Implementation said in a Monday release.

Transport inflation climbed to 4.3% in June from 1.75% in May, the ministry data showed.

India's central bank kept interest rates unchanged last month while forecasting that inflation would rise and growth would temper in the financial year ending March 2027. The Reserve Bank of India projected inflation at 5.1% and core inflation at 4.7% for that period. Cnbc reported that a brief ceasefire between Iran and the U.S.

In June gave way to resumed hostilities last week, lifting global oil prices as the two sides contest control of the Strait of Hormuz. India imports nearly 85% of its fuel needs and depends on the strait for about 50% of its crude imports, 60% of its liquefied natural gas supplies, and almost all of its liquefied petroleum gas supplies.

The India Meteorological Department forecast July rainfall at 6% below the long-period average, raising further risks of crop shortages linked to El Niño weather patterns.