Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that the government has been actively undertaking a series of measures to control inflation and mitigate its impact on consumers.
Also Read: WPI inflation quickens to 9.87% in June from 9.68% in May
These measures include augmenting buffer stocks for essential food items, strategically selling procured grains in the open market, and calibrating trade policies.
As a result of the government’s measures, the retail or Consumer Price Index (CPI)-based inflation rate has been below the 4 per cent target over the last two quarters — 3.1 per cent (January-March of FY26) and 3.9 per cent (April-June FY’27).
On a year-on-year basis, wholesale price index (WPI) based inflation increased from 9.68 per cent in May to 9.87 per cent in June.
Also Read: What is Producer Price Index and why will it replace Wholesale Price Index in India?“The rise in WPI inflation is largely driven by the price pressures in commodities that are more sensitive to global energy and commodity price movements, particularly mineral oils (including petroleum products), food articles, basic metals, chemicals and chemical products,” Chaudhary said in a written reply.
He said the government, in consultation with the RBI, determines the CPI retail inflation target once every five years to maintain price stability while keeping in mind the objective of growth.
The government notified on March 25, 2026, the CPI inflation target as 4 per cent with a lower tolerance level of 2 per cent and upper tolerance level of 6 per cent, for the period from April 1, 2026 to March 31, 2031.
India’s retail inflation rose to a provisional 4.38 per cent in June 2026, up from 3.93 per cent in May, driven primarily by higher food and transport prices.