India Faces Stagflation as Inflation Rises

India is facing a situation where prices are going up, but the economy is growing slower.

This is called stagflation.

In June 2026, the cost of living, measured by something called the Consumer Price Index, went up to 4.4%, which is higher than the target set by the Reserve Bank of India.

Food, petrol, and diesel prices are all increasing, making life more expensive for people.

The economy grew by 7.6% last year, but this year it's expected to grow by only 6.6%.

The bank that controls money in India, called the RBI, is trying to balance things by keeping interest rates the same.

They don't want to make loans more expensive, but they also don't want people's savings to lose value.

The weather, especially the monsoon rains, could make things worse if crops don't grow well.

The government is trying to help by making some imports cheaper and giving money to people who need it.