RBI reported in its monetary policy minutes that as of June 2026, fuel inflation has been modest due to limited effect from rising international energy prices on domestic retail prices. CPI inflation slightly exceeds the 4% target, while core inflation remains below 4%. Core inflation, excluding precious metals, stands at 2.5%. These figures indicate that the economy has faced limited pass-through of the recent terms-of-trade shocks from rising crude prices and a weakened INR.