From Tomatoes To Jewellery: Why Telangana Saw India’s Highest Inflation In June

India’s retail inflation rose to 4.38 per cent in June 2026 , crossing the Reserve Bank of India’s four per cent target for the first time in months. While still within the RBI’s two to six per cent tolerance band, the latest Consumer Price Index data showed rising household expenses, with Telangana recording the highest state inflation at 6.36 per cent .

The price rise was driven by food items, precious metals and daily essentials. Silver jewellery prices surged over 133 per cent due to higher global silver prices, while gold, diamond and platinum jewellery rose nearly 37 per cent. Among food items, tomato prices jumped nearly 32 per cent after delayed summer crop planting caused supply shortages, according to Crisil. Ginger prices increased over 50 per cent, while raisins and other dry fruits rose more than 20 per cent.

Several other categories also became costlier. Personal care products climbed nearly 17 per cent, restaurants and accommodation costs rose close to seven per cent, and transport expenses increased due to higher fuel prices linked to global oil market disruptions. Clothing and footwear prices also edged higher.

Some items provided relief, with potatoes falling over 20 per cent , peas declining nearly 10 per cent and cumin prices dropping close to four per cent. Vehicle prices also eased, while housing inflation remained moderate at 2.10 per cent.

After Telangana, Andhra Pradesh and Puducherry recorded 5.39 per cent inflation each , followed by Madhya Pradesh at 5.09 per cent and Karnataka at 4.80 per cent. Mizoram, Tripura and Arunachal Pradesh reported the lowest inflation levels. Food inflation rose to 5.32 per cent , with rural areas facing greater pressure at 5.45 per cent.