Archive · 27 Jul 2026
India's Core Inflation Drops to Historic Low
India's economy has been growing, but something unusual is happening with prices.
Normally, when the economy grows fast, prices for things like food and fuel go up.
But in India, the prices for most things, except food, fuel, and gold, have been going down.
This special measure of prices, called 'refined core inflation,' was around 6% in early 2023 but dropped to 2.1% in the first part of 2026.
Even though it went up a little to 2.5% in June, it's still very low.
This is different from what usually happens when an economy grows.
India's refined core inflation fell from 6% in early 2023 to 2.1% in Q1 2026.
Core inflation slightly increased to 2.5% in June 2026.
Conventional economic models predicted inflation would rise with growth.
Refined core inflation excludes food, fuel, and precious metals.
India's economic growth did not lead to increased inflation as expected.
- Who
- India
- What
- Core inflation rate
- When
- June 2026
- Where
- India
- Why
- Due to domestic demand conditions
- Core Inflation Rate
- 2.5% in June 2026
- Refined Core Inflation
- 2.1% in Q1 2026
- Inflation Trend
- Falling since early 2023
- Economic Model Prediction
- Above-trend growth should increase inflation
- Actual Outcome
- Inflation decreased despite growth